New York (CNN Business)The US economy contracted for the first time in nearly six years between January and March, as the coronavirus crisis put the world in a choke hold.

America’s first-quarter GDP fell at a 4.8% annualized rate, the US Bureau of Economic Analysis reported on Wednesday.

It was the first contraction of the US economy since the first quarter of 2014, and the worst drop since the fourth quarter of 2008.

Consumer spending, the largest contributor to US GDP, declined at a 7.6% annualized rate, its deepest decline since the second quarter of 1980.

The economy came to a screeching halt in March, when businesses shut and stay-at-home orders were put in place across the country. That was enough to offset the economic activity in January and February.

In the current quarter, the economy is expected to contract even further. Even though some states are beginning to reopen, experts believe it will be some time until activity levels are back to what they were before the outbreak.

— This is a developing story. It will be updated

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

H&M set to cancel furloughs for 2,500 at Stockholm headquarters

STOCKHOLM (Reuters) – H&M (HMb.ST), the world’s second-biggest fashion retailer, said on Wednesday it expects the 2,500 furloughed staff at its headquarters in Stockholm to be able to return to work by July. “As it currently stands, we will not…

Bracing for Bernie: Why Sanders could be a nightmare for Wall Street

New York (CNN Business)Bernie Sanders winning the White House would be Wall Street’s worst political nightmare. Investors famously hate uncertainty. And it’s hard to imagine something that would cause more uncertainty to the capitalist system than electing a self-proclaimed democratic…

Global companies step up investment in China

Foreign businesses are stepping up their investment and forming more local partnerships to reinforce their strong commitment to China and cash in on the country’s vast market potential and dynamic growth momentum, experts said. Dassault Systemes, a French industrial software…

China will soon dominate space – entrepreneur tells RT’s Keiser Report

If you look at some of the scientific progress that is coming out of China, Collins says, it is clear that the United States will soon (if not already) end in the “catch-up phase” in terms of scientific and technical…