Coronavirus Mitigation Efforts Led to First Negative Reading Under Trump Administration
Washington, D.C. (PPD) — The Bureau of Economic Analysis (BEA) reported the second estimate for Q1 GDP in 2020 came in at -5.0%, slightly worse than the advance estimate and consensus forecast. In Q4 2019, real GDP rose 2.1%.
Forecasts for ranged from a low of -5.2 to a high of -4.5. The consensus forecast was -4.8.
“The decline in first quarter GDP reflected the response to the spread of COVID-19, as governments issued “stay-at-home” orders in March,” the BEA stated. “This led to rapid changes in demand, as businesses and schools switched to remote work or canceled operations, and consumers canceled, restricted, or redirected their spending.”
Real gross domestic income (GDI) fell 4.2% in Q1 2020 after increasing 3.1% (revised) in Q4 2019. The average of real GDP and real GDI — a supplemental measure of U.S. economic activity that equally weights GDP and GDI — fell 4.6% in Q1 after gaining 2.6% in Q4 2019.
This article is being updated.