The gross domestic product (GDP) of the United States shrank by 0.6% in the second quarter of 2022 compared to the same period the previous year, according to the second estimate from the Bureau of Economic Analysis published on Thursday. The latest figure has been revised in comparison to the first estimate, which put the second trimester GDP decrease at 0.9%. The US economy contracted by 1.6% in the first three months of 2022. The price index for gross domestic purchases rose by 8.4% in the second quarter, 0.2 percentage points up compared to the previous projection.
PCE price index climbed a whopping 7.1%
The closely watched and FED’s favorite inflation guage the personal consumption expenditures (PCE) price index climbed a whopping 7.1%. Excluding food and energy prices, the PCE price index was up 4.4%.