In the economics, a recession is a downturn in the business cycle when economic work normally declines. Recessions usually take place when there is a decline in spending.
On Thursday GDP report, Biden said, "no surprise that the economy is slowing down" among inflation. He also told early this week that the US wouldn’t enter a recession.
Recession- US economy
High-interest rates and high inflation forced businesses to cut spending, causing US economy to contract for a second straight quarter in the spring, turning it into a recession.
On Thursday, the Commerce Department informed that GDP dropped 0.9% annually in the 2nd quarter. The news was not as bad as the news headlines suggest.
Recession- GDP growth
Firms have slowed inventory growth again, which means minimum production is needed to meet the requirement, 2% points decline in GDP growth.
The narrowing trade deficit forced the needle in the other direction but was insufficient to offset the impact of inventories.
Recession- trade deficit
"Remains historically strong, with unemployment at 3.6% and more than 1 million jobs created in the second quarter alone," Biden said.
In a July 21 blog post, Economic Advisers of White House tried to modify the definition of a recession by saying that decline in GDP in the second quarter does not mean the country is in recession.
Recession- GDP report
The GDP report published on Thursday showed a continued slowdown in economic progress, approaching the technical limits of a recession.