In the second quarter, the U.S. economy noticed the largest volume of its activity ever known, although it was not as bad as feared.
According to data released by the Department of Commerce at first reading on Thursday, April-June. Gross domestic product fell by 32.9%. Economists surveyed by Dowo Jones sought a 34.7% drop.
However, it was the worst drop of all time, caught only in 1921. In the middle.
The sharp contraction in personal consumption, exports, stocks, investment and government and municipal expenditure has converged to reduce GDP as a result of all goods and services produced during this period.
Expenditure has fallen on health care and care for goods such as clothing and footwear. The decline in inventory investment was driven by motor vehicle dealers, while investment in equipment and new family housing received a lot of attention.
Domestic purchase prices, the main measure of inflation, declined by 1.5% over the period, compared with an increase of 1.4% in the first quarter, when GDP contracted by 5%, and the personal consumption price index fell by 1.9%, after declining in the first quarter. rose to a low of 1.3% in the quarter. . Excluding food and energy, key PCE prices fell 1.1%.
However, personal income has increased, largely due to government transfers related to the coronary pandemic. Current dollar personal income more than increased sixfold to $ 1.39 trillion, and disposable personal income increased 42.1% to $ 1.53 trillion.
Despite the increase, personal expenses fell $ 1.57 trillion, largely due to lower service costs.
Neither the Great Depression, nor the Great Recession, nor any of the more than three dozen economic recessions of the last two centuries has ever caused such a sudden outflow in such a short time.
In comparison, the worst in 2008. The quarter of the financial crisis was an 8.4% drop in GDP in the fourth quarter of the same year. The previous sign of the lowest water level was a 10% slip in 1958. In the first quarter, and the worst in all history – 1921. In the second quarter.
This particular downturn depends on a different source than its predecessors: a government-induced closure to combat Covid-19.
Workers across the country were told to stay in any job that was not deemed necessary, halting the noise at which the unemployment rate peaked at 14.7 percent, the highest period since the Depression. The National Bureau of Economic Research said the current recession actually began in February, a month before the pandemic was announced. GDP contracted by 5% in the first quarter.
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