The great Recession debate

The US economy shrank by 0.9% in the second quarter. The 1.6% drop in the first quarter translates to back-to-back negative quarters. But is that a recession?

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Welcome to the Know the Difference Minute for Thursday, July 28th.
Forget the UFC. The current cage match is over whether or not 2 consecutive quarters of negative GDP equals a recession.
The fact is the US economy shrank by 0.9% in the second quarter. The 1.6% drop in the first quarter translates to back-to-back negative quarters.
You’ll hear this data will be revised 2 more times and was driven mostly by a decline in inventory levels. You’ll also hear about the strength of the job market. Then, there is the National Bureau of Economic Research. It is the official sanctioning body of recessions. It is no rush to make a call.
Meanwhile, corporate earnings pour in. Our focus is on forward guidance for clues to the health of companies and sectors that perform now and during an eventual recovery.
I’m Dave Spano from Annex Wealth Management. That is your Know the Difference Minute.