July 2020

US GDP Plunges 32.9 Percent in Worst Second Quarter Ever

The percentage is the worst decline in U.S. history, eclipsing every major economic disaster, including the Great Depression. As steep as this decline was, economists had predicted a worse fall of 34.7 percent. The closest percentage drop of gross domestic product (GDP) occurred in the middle of 1921. [The report] just highlights how deep and dark the hole is that the economy cratered into in Q2. It’s a very deep and dark hole and we’re coming out of it, but it’s going to take a long time to get out, Mark Zandi, Moody's Analytics, via CNBC. The GDP was greatly affected by sharp declines in personal consumption, state and local spending, exports, investment and inventories. Personal consumption declined a whopping 25 percent.In addition, unemployment filings increased for a second straight week after showing signs of decline.