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Final report says U.S. economy declined by record 31.4% in Q2

Final report says U.S. economy declined by record 31.4% in Q2
A shuttered restaurant is seen on Sunset Boulevard in the Echo Park neighborhood of Los Angeles, Calif., on August 10. Many similar businesses nationwide have been forced to close by the COVID-19 pandemic. File Photo by Jim Ruymen/UPI | License Photo

Sept. 30 (UPI) -- The U.S. economy declined by a record 31.4% between April and July, the Commerce Department said in its decisive quarterly report Wednesday.

The department's third and final estimate of U.S. gross domestic product for the second quarter was slightly better than its previous estimate last month, which said the economy declined 31.7% in Q2.

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The upward revision is largely due to higher personal consumption expenditures, which partly offset lower export figures and declining nonresidential fixed investments.

The decline, almost entirely created by the COVID-19 pandemic, shattered the previous record fall for a three-month quarterly period -- a 10% decline in 1958. The domestic economy declined by about 5% in the first quarter of 2020.

Many analysts expect the third quarter to show a rebound and actual growth of GDP, which represents the total value of goods and services provided in the United States -- possibly as high as 30%. Such a figure would easily surpass the all-time quarterly growth record, 16.7% in 1950.

The Commerce Department will release its initial third-quarter estimate on Oct. 29.

COVID-19 pandemic alters life in New York City

Mannequins with face masks and designer clothing fill a window at a Diane Von Furstenberg store in New York City on September 8, 2020. Photo by John Angelillo/UPI | License Photo

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