2Q GDP Sinks: What Does it Signal Ahead for Agriculture?
GDP Sinks 072922
The Commerce Department put out its second quarter GDP data this week, showing the U.S. economy shrank from April through June. It contracted at 0.9%, but annualized it was down 0.2%.
That's the second straight quarter of negative growth.
Economic pressure is now coming from two sides, rampant inflation and rising interest rates.
On Wednesday the Fed increased rates again..another three quarters of a point.
Market analysts say the Q2 data is a sign the U.S. is entering a recession, along with China and Europe.
Mike Zuzulo, Global Commodity Analytics says, "You've got the three largest economies in the world now in recession or heading toward recession. And the big question we don't know yet is how severe is it going to be. He says the key is tied to Russia's control of energy supplies and the impact that has on global prices, which is a key driver of inflation and slows economic growth. Zuzulo is concerned this will continue mean higher inputs for farmers for 2023.
