As data on U.S. economic growth for the second quarter trickles in over the next month, signs that a recession is already under way may emerge. The economy is on the cusp of a recession.

The economy shrunk by -1.5% in the first quarter of 2022 and the second quarter could be negative and, thus, begin a recession officially. However, some very key fundamentals remain positive and indicate a recession could be short and shallow.