- The US economy contracted for the first time in nearly six years between January and March.
- First quarter GDP fell at a 4.8% annualized rate.
- It was the first contraction of the US economy since 2014 1st quarter and the largest drop cine 2008 4th quarter.
- Consumer spending declined at a 7.6% annualized rate, as people were ordered to stay at home.
- Forecasters expect a much larger contraction in the second quarter, producing the two consecutive quarters of decline that commonly define a recession.
- James Sweeney, Chief economist at Credit Suisse said, “The weakness was only in the last three weeks of March so there’s a lot more to come. We are headed for the largest contraction in GDP since the Great Depression.”
Source: CNN, Wall Street Journal