US real gross domestic product decreased at an annual rate of 5.0% in first quarter of this year, according to the third estimate released today by the US Bureau of Economic Analysis. The new estimate is unchanged from the second estimate released in May: both reflect the response to the spread of Covid-19 as governments issued stay-at-home orders in March.
A much worse decline is expected in the current April-June economic period because of the coronavirus pandemic, CNBC reported, with economists forecasting a GDP drop of about 30%.
In comparison, GDP had increased 2.1% in the fourth quarter of 2019.
With the third estimate, an upward revision to nonresidential fixed investment was offset by downward revisions to private inventory investment, personal consumption expenditures and exports.
The “advanced” estimate for second-quarter GDP estimate will be issued July 30.