The U.S. economy shrank at an annual rate of 0.6 percent in the second quarter of this year, up from a 0.9 percent contraction estimated a month ago, according to data released Thursday by the U.S. Commerce Department.  

With two consecutive quarters of negative gross domestic product (GDP) growth – the new estimation for the second quarter remaining in negative territory after a first-quarter decline of 1.6 percent – the U.S. economy still meets the technical definition of a recession.

The update primarily reflects upward revisions to consumer spending and private inventory investment that were partly offset by a downward revision to residential fixed investment, the second estimate showed.

The decrease in real GDP reflected decreases in private inventory investment, residential fixed investment, federal government spending, and state and local government spending that were partly offset by increases in exports and consumer spending. Imports, which are a subtraction in the calculation of GDP, increased.

Jay Bryson and Shannon Seery, economists at Wells Fargo Securities, wrote in an analysis that second-quarter weakness still reflects "a genuine slowing" in economic activity, saying, "we forecast the economy will fall into a mild recession by the beginning of next year." 

(Source: Xinhua with edits)