The Department of Commerce revised the estimate of real GDP Thursday morning, finding the same as in July.
According to the Bureau of Economic Analysis, second-quarter real GDP fell 0.6% yearly, less than the July 28 estimate of 0.9%.
Economist E.J. Antoni told the Daily Caller News Foundation before the results that the new estimate was unlikely to alter considerably from July.
The Biden administration has argued that a recession is not defined by two consecutive quarters of GDP loss. Treasury Secretary Janet Yellen emphasized the soundness of the job market ahead of July GDP estimates as an example of why the U.S. is not in a recession.
Antoni told DCNF, “We are already in a corporate earnings recession.'' Many corporations have only met or beat earnings estimates last quarter because those estimates were revised down from previous quarters.”
Target, Best Buy, Walmart, Macy's, and Nordstrom lowered earnings projections since the recent GDP estimate. As corporations struggle with inventory overflow, some have turned to truck trailers or parking lots as temporary storage facilities, the Wall Street Journal said.
According to the WSJ, shipping industry experts believe this behavior strains the sector by occupying cargo containers that could deliver goods.
“When a trailer is being used for storage, it can’t be used for transporting other goods,” says Lisa Ellram of Miami University.
Every time monthly supply of new houses has exceeded 9 months a recession has ensued.
Currently at 10.8 months. pic.twitter.com/aUfctnDGgE
— Sven Henrich (@NorthmanTrader) August 24, 2022
Macy's and Target have slashed prices to eliminate inventory, while others use cheap outlets like Ross or Burlington Coat Factory, the WSJ reported.
The July Consumer Price Index showed consumer inflation at 8.5% year-over-year, continuing historically high while being below the June peak of 9.1%. The July Producer Price Index estimated inflation at 9.8% year-over-year, down from 10.3% in June.
The preceding is a summary of an article that originally appeared on DAILY CALLER.