‘UnPHILtered’: UIndy econ professor explains the shrinking economy

INDIANAPOLIS (WISH) — New numbers from the Commerce Department show the U.S. economy shrank last quarter for the first time since the pandemic began two years ago. 

According to the report, consumers continued to spend, but rising inflation and high gas prices affected the pockets of many Americans. Many economists expect a rebound next quarter, citing solid hiring and wage gains. 

Matthew Will, an associate professor of finance at the University of Indianapolis, joined News 8’s Phil Sanchez on “UnPHILtered” to explain the report’s findings.

“We kind of knew this was coming because the high inflation is really causing a strain on the economy,” Will said. “The economy actually grew at 6.5% last quarter, but the inflation was 7.8% on the GDP number, so that caused it to be negative, so the economy shrank. It’s inflation that’s really causing all the trouble here, and until we get a handle on inflation, it’s going get worse.”

Retail giant Amazon reported its first quarterly loss since 2015. The retail giant lost nearly $4 billion last quarter, blaming a slowdown in pandemic-induced online shopping and its investment in electric-vehicle startup Rivian Automotive not panning out.

To watch the full interview, click on the video above.