WASHINGTON (AP)– The U.S. economy shrank at a dizzying 33%annual rate in the April-June quarter– by far the worst quarterly plunge ever– when the viral break out closed down companies, throwing tens of millions out of work and sending out joblessness surging to 14.7%, the federal government stated Thursday.
The Commerce Department’s estimate of the second-quarter decline in the gdp, the total output of goods and services, marked the sharpest such drop on records dating to1947 The previous worst quarterly contraction, a 10%drop, took place in 1958 throughout the Eisenhower administration.
Last quarter’s drop followed a 5?ll in the January-March quarter, during which the economy officially entered a recession set off by the infection, ending an 11- year economic growth, the longest on record in the United States.
The contraction last quarter was driven by a deep pullback in consumer spending, which represents about 70%of economic activity. Spending by consumers collapsed at a 34%annual rate as travel all however froze and shutdown order