U.S. Economy Shrinks by Record 32.9% Pace in Second Quarter
The U.S. economy backpedalled at an unprecedented pace in the second quarter as the coronavirus pandemic upended the U.S. economy by forcing businesses across the country to close their doors.
The Bureau of Economic Analysis reported Thursday that gross domestic product, which measures the output of the economy, shrank at an annual pace of 32.9% between April and June. Economists polled by FactSet had been expecting the economy to shrink by 34.6%.
Consumption, a key measure of the strength of the economy, drove most of the decline, falling 34.6%, with personal consumption expenditures dropping by 1.1%. The price index, which measures the direction of the prices of goods and services, slipped 1.8%, suggesting deflation took hold during the quarter.
The report provided a grim snapshot of the full impact that widespread disruptions in the U.S. economy caused during the critical second quarter - particularly since responses to the pandemic only began in earnest in the latter part of March.
https://www.thestreet.com/markets/economy-growth-gdp-record-contraction-coronavirus
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