US GDP fell at 5.0% rate in Q1; worse is likely on the way
Jun 25, 2020
The U.S. economy shrank at a 5.0% rate in the first quarter with a much worse decline expected in the current three-month economic period because of the coronavirus pandemic
WASHINGTON (AP) — The U.S. economy shrank at a 5.0% rate in the first quarter with a much worse decline expected in the current three-month economic period because of the coronavirus pandemic.
The Commerce Department reported Thursday that the decline in the gross domestic product, the total output of goods and services, in the January-March quarter was unchanged from the estimate made a month ago.
That was the sharpest quarterly decline since an 8.4% fall in the fourth quarter of 2008 during the depths of the financial crisis.
The first quarter decline reflected just two weeks of the shutdowns that began in many parts of the country in mid-March.
Economists are forecasting a much bigger GDP drop of around 30% for the current April-June period.
More News
The Reporter Who Exposed Elizabeth Holmes on Nathan Fielder’s Documentary
Ms. Holmes handed the makers of “You Can See Everything” — and the rest of the world — a microscope with which to observe and dissect her lies.
Corporate Tax Revenue Falls Even as Profits Soar Under Trump
The annual decline was about $70 billion. Companies are writing off billions in A.I. investments, taking advantage of tax cuts that President Trump signed into law.
Can Cereal Be Healthy? Big Companies Are Trying.
As more Americans turn away from the snap, crackle and sugar, the industry is trying to capitalize on our current obsession with wellness.
It’s Time to Shop Medicare, and This Year, It’s Extra Important
Be sure to read your mail this fall — big changes to prescription drug plans and Medicare Advantage provider networks are coming, and could cost you more.
Weak Links Start to Show in A.I. Borrowing
Debt trouble at CoreWeave, Oracle and SoftBank raises questions about whether there is broader trouble with the data center build-out.
Call for more food funding due to high living cost
Deputy Louise Doublet does not think the cost of living was considered in the ending of a trial.
Charity reflects on changing needs over 25 years
Help a Guernsey Child says it has provided in excess of £1.2m worth of essential support.
Nightclubs are disappearing - and it's affecting young people
One young person said with no nightlife in their town they cannot "let loose and mess around".
M.L.B. Playoff Ads With Sydney Sweeney and Megan Fox Draw Backlash
Commercials with Sydney Sweeney promoting a gambling platform and Megan Fox endorsing male enhancement have rankled fans, and even athletes. Who is in charge?
Netflix Hurries to Rewrite Its Narrative With Layoffs and a Sudden Firing
Despite strong revenues and profits, the streaming service cut 1,000 jobs and jettisoned its chief content officer. Drops in the stock price and viewer engagement are to blame.
Why Bad News in the Bond Market May Be Good News for Investors
In the contrarian logic of investing, rising interest rates have made bonds much more attractive, our columnist says.
U.S. Budget Deficit Nears $2 Trillion, a Reality Check for Trump’s Cost Cutting
Higher interest rates are inflating borrowing costs as the Trump administration spends on the Iran war and tariff refunds.