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- U.S. economy contracts faster than initially thought in Q1
U.S. economy contracts faster than initially thought in Q1
A report from
the Commerce Department showed on Thursday that the U.S. economy contracted
more rapidly than initially thought in the first quarter of 2020, due to a
downward revision to private inventory investment was partly offset by upward
revisions to personal consumption expenditures (PCE) and nonresidential fixed
investment.
According to the
second estimate, the U.S. gross domestic product (GDP) fell at a 5.0 percent
annual rate in the first quarter, faster than a 4.8 percent drop reported in
the advance estimate.
Economists had
expected the decline rate to stay unrevised at 4.8 percent, following the fourth
quarter's increase of 2.1 percent.
The decrease in
real GDP in the first quarter reflected negative contributions from PCE,
private inventory investment, nonresidential fixed investment, and exports that
were partly offset by positive contributions from residential fixed investment,
federal government spending, and state and local government spending. Imports,
which are a subtraction in the calculation of GDP, fell.
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