The US economy contracted between April and June for the second consecutive quarter, at a year-on-year rate of 0.9%, raising fears that the country has entered a recession.
The decline the Commerce Department reported Thursday in gross domestic product -- the economy's broadest gauge -- followed a 1.6% annual decline between January and March.
Consecutive quarters of falling GDP are an informal, though not definitive, indicator of a recession.
The report comes at a critical time.
Consumers and businesses have been struggling under the weight of inflation and rising borrowing costs.
On Wednesday, the Federal Reserve raised its benchmark interest rate by a hefty three-quarters of a point for the second time in a row as it tries to beat the worst bout of inflation in four decades.
