Baltimore Sun

GDP report stirs fears of recession

White House says still signs of overall economic progress

- By Paul Wiseman

WASHINGTON — The U.S. economy shrank from April through June for a second straight quarter, contractin­g at a 0.9% annual pace and raising fears that the nation may be approachin­g a recession.

The decline that the Commerce Department reported Thursday in the gross domestic product — the broadest gauge of the economy — followed a 1.6% annual drop from January through March. Consecutiv­e quarters of falling GDP constitute one informal, though not definitive, indicator of a recession.

The GDP report for last quarter pointed to weakness across the economy. Consumer spending slowed as Americans bought fewer goods. Business investment fell. Inventorie­s tumbled as businesses slowed their restocking of shelves, shaving 2 percentage points from GDP.

Higher borrowing rates, a conse

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