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7/30, 2:30 PM (Source: TeleTrader)
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US GDP plummets 32.9% in Q2 amid coronavirus pandemic

The United States gross domestic product (GDP) dropped 32.9% in the second quarter, according to the first preliminary estimate released on Thursday by the Bureau of Economic Analysis. Nevertheless, the strong fall which came amid the coronavirus crisis was lower than market expectations of a 34.1% GDP drop. In the previous quarter, GDP declined by 5%.

The Bureau of Economic Analysis stressed that the drop in GDP was mostly influenced by the COVID-19 lockdowns in March and April, but noted sentiment was "partially lifted" by government relief to households and businesses.

The personal consumption expenditure (PCE) price index decreased by 1.4% during the second quarter, compared to the previous three-month period when it was up 1.4%. Excluding food and energy prices, the PCE price index was down by 1.1%, compared to a growth of 1.6% in the first quarter.

Breaking the News / VP