US annualised GDP collapsed by 32.9 per cent in the second quarter as Covid-19 wreaks havoc on the economy.
The Commerce Department’s first reading on the data released Thursday revealed the devastating effects the global pandemic is having on business.
Despite being below a predicted drop of 34.7 per cent it is still the worst drop ever – with the closest previously coming in mid-1921.
Not the Great Depression nor the Great Recession nor any of the more than three dozen economic slumps over the past two centuries have ever caused such a sharp drain over so short a period of time.
A separate report released today showed the number of Americans filing for unemployment benefits increased for a second straight week.
Initial claims through regular state programs rose to 1.43 million in the week ended July 25, up 12,000 from the prior week, the Labor Department said.
There were 17 million Americans filing for ongoing benefits through those programs in the period ended July 18, up 867,000 from the prior week.
Stock-index futures remained lower and the yield on the 10-year US Treasury note extended declines after the reports.
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