The United States economy contracted 32.9% on an annualized basis in the second quarter of 2020.

This is the deepest drop in U.S. Gross Domestic Product (GDP) since the government began taking records in 1947.

The Department of Commerce reported that the contraction in the United States economy reflected declines in personal consumption expenditures (PCE), exports, private inventory investment, nonresidential fixed investment, residential fixed investment, and state and local government spending, which they were partially offset by an increase in federal government spending.

Imports, which are a subtraction in the calculation of GDP, decreased.

Likewise, the decrease in PCE reflected declines in services (led by medical care) and goods (led by clothing and footwear).

The decline in exports mainly reflected a decline in goods (led by capital goods).

Meanwhile, the decline in private inventory investment primarily reflected a decline in retail (led by car dealers).

The decline in non-residential fixed investment mainly reflected a decrease in equipment (led by transportation equipment), while the fall in residential investment mainly reflected a decrease in new single-family homes.

United States economy

Current GDP in dollars decreased 34.3%, or 2.15 trillion, in the second quarter to a level of 19.41 trillion.

In the first quarter, the United States economy decreased 3.4%, or $ 186.3 billion.

The gross domestic purchase price index decreased 1.5% in the second quarter, in contrast to a 1.4% increase in the first quarter.

The PCE price index decreased 1.9%, in contrast to an increase of 1.3 percent.

Excluding food and energy prices, the PCE price index fell 1.1%, in contrast to a 1.6 percent increase.