US economy shrinks 31.7 percent in 2nd quarter

Kyodo News

Posted at Aug 27 2020 09:48 PM

Health workers in New York City, one of the most severely affected cities by the pandemic in the US. Bryan R. Smith, AFP file photo

WASHINGTON - The US economy shrank an annualized 31.7 percent in real terms in the April-June period amid the coronavirus pandemic, slightly less than an earlier estimate of a 32.9 percent dive, the Commerce Department said Thursday.

The contraction in terms of inflation-adjusted gross domestic product, which followed a 5.0 percent drop in the preceding quarter, still represents the steepest quarterly decline since comparable data became available in 1947.

According to the department, private consumption, which accounts for two-thirds of the world's largest economy, dropped 34.1 percent in the second quarter, revised slightly upward from a fall of 34.6 percent. The figure followed a 6.9 percent decline in the January-March period.

Nonresidential private investment, a measure of business spending, dropped 26.0 percent after a decline of 6.7 percent.

Exports dived 63.2 percent after dropping 9.5 percent in the preceding quarter. Imports tumbled 54.0 percent in the second quarter against a 15.0 percent drop in the first quarter.

GDP measures the total output of goods and services within a country's borders.