Breaking stock market news
“Q2 GDP: US economy contracted by worst-ever 32.9% in Q2, crushed by coronavirus lockdowns.
The US economy contracted at the sharpest rate on record in the second quarter this year, affirming fears that the coronavirus pandemic and measures to contain it drove a historic plunge in consumer and business activity.
Here were the main metrics from the Bureau of Economic Analysis’ advance Q2 GDP report, compared to consensus estimates compiled by Bloomberg:
- Q2 GDP annualized, quarter over quarter: -32.9% vs. -34.5% expected vs. -5.0% in Q1
Market participants were bracing for an ugly second-quarter print, with the coronavirus pandemic forcing business closures and disrupting daily activity for much of the April through June period.
The estimate for a 34.5% annualized contraction would have marked by far the worst plunge ever recorded, based on Bureau of Economic Analysis data spanning back to 1947. Before the pandemic, the worst GDP print on record was in the first quarter of 1958, when GDP fell 10.0% on an annualized basis.
US economic activity contracted by 5.0% in the first quarter of 2020, which captured only the start of the coronavirus pandemic and business shutdowns in March.”