Slump In U.S. Economic Activity Unrevised At 5.0% In First Quarter
A report released by the Commerce Department on Thursday showed the slump in U.S. economic activity in the first quarter was unrevised from the previous estimate.
The Commerce Department said real gross domestic product tumbled by 5.0 percent in the first quarter, unchanged from the estimate provided last month and in line with expectations.
The steep drop in GDP in the first quarter reflects a notable turnaround from the 2.1 percent jump seen in the fourth quarter of 2019.
The decrease was unrevised from the previous estimate as an upward revision to non-residential fixed investment was offset by downward revisions to private inventory investment, consumer spending and exports.
The sharp pullback in GDP in the first quarter reflected negative contributions from consumer spending, private inventory investment, exports, and non-residential fixed investment.
Positive contributions from residential fixed investment, federal government spending, and state and local government spending helped limit the downside along with a decrease in imports, which are a subtraction in the calculation of GDP.
The Commerce Department noted the 6.8 percent nosedive in consumer spending reflected a decrease in spending on services, led by healthcare as well as food services and accommodations.