xi's moments
Home | Americas

Pivotal data show recession already in US: economist

Xinhua | Updated: 2023-05-30 10:07

The US Federal Reserve building is pictured in Washington. [Photo/Agencies]

NEW YORK - A recession has arrived in the United States but it's gone unnoticed, according to top economist David Rosenberg, who highlighted data showing back-to-back declines in US gross domestic income to support his argument, business news portal Insider reported.

The Rosenberg Research founder and president pointed to the gross domestic income data, a key measure of economic activity, which was released last week and showed a 2.3 percent first-quarter decline on a seasonally adjusted annual basis after contracting 3.3 percent in the fourth-quarter of 2022, as evidence of a recession.

"Averaging it out with GDP, the economy has contracted for back-to-back quarters and in 4 of the past 5! The recession has arrived and nobody's noticed," the report quoted Rosenberg as saying in a tweet last Thursday.

The veteran economist has consistently made pessimistic calls about the US economy this year. In an earlier tweet, Rosenberg said the benchmark S&P 500 index is signalling a recession as key stocks closely tied to the real economy have plunged.

"Recession fears have been plaguing investors for months now, after the Federal Reserve raised interest rates from near-zero levels to more than 5 percent over the past 14 months in a bid to cool inflation," noted the report.

That, combined with a turmoil in the banking sector and a subsequent credit squeeze, has fueled concerns the United States will tip into recession, it added.

Global Edition
Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
License for publishing multimedia online 0108263

Registration Number: 130349