Top economists don’t believe a downturn has begun but some predict a mild one is likely by early ne year.
Residential investment plunged last quarter as the housing market slumped amid sharply rising mortgage rates while business stockpiling and investment also declined, more than offsetting a modest advance in consumer spending.
The nation’s gross domestic product, the value of all goods and services produced in the U.S., shrank at a seasonally adjusted annual rate of 0.9% in the April-June period, the Commerce Department said Thursday. That followed a 1.6% drop early this year. Economists surveyed by Bloomberg had forecast a 0.5% rise in GDP.