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U.S. economy contracts 5.0 percent in Q1 in final estimate

Christian Fernsby ▼ | June 26, 2020
U.S. economic activity in the first quarter (Q1) contracted at an annual rate of 5.0 percent in the third, or final estimate, unrevised from the second estimate, the U.S. Commerce Department reported Thursday.
U.S. homes
Activity   U.S. homes
With the third estimate, an upward revision to nonresidential fixed investment was offset by downward revisions to private inventory investment, personal consumption expenditures (PCE), and exports, the report showed.

Topics: U.S.

The estimate of 5.0-percent contraction is 0.2 percentage point lower than the advance estimate, according to the report.

The decrease in real gross domestic product (GDP) in the first quarter reflected negative contributions from PCE, private inventory investment, exports, and nonresidential fixed investment that were partly offset by positive contributions from residential fixed investment, federal government spending, and state and local government spending, the report showed. Imports, which are a subtraction in the calculation of GDP, decreased.