The coronavirus pandemic resulted in the greatest GDP dip in American history, the Commerce Department said on Thursday, citing preliminary data.US gross domestic product dropped at a listing 33% annualized rate in the second quarter, which means the market was roughly 10% smaller after those 3 months than in the beginning of the year.Morgan Stanley researchers forecast that one document will be immediately followed by a second, stating in a research note that third-quarter GDP is poised to demonstrate the biggest sequential growth on record.
Picture via Morgan Stanley Research.
Bureau of Economic Analysis, Morgan Stanley Research
The next quarter’s extreme drop-off can be credited to weeks of pandemic-related shutdowns. March and April saw mass layoffs and entirely decimated economical action. However, as lockdowns increased in May and June — even as coronavirus cases are still spike — financial activity endangered again.
A note from Bank of America stated July must continue to observe jobs development, forecasting roughly 1 million jobs will be added on web following June’s record 4.8 million growth. Real-time data sources in the Bureau of Labor Statistics and Google mobility trends indicate decreasing momentum on account of the development of virus hotspots, the bank said.
Picture via BofA Global Research, resources also include BLS and Google.
Bureau of Labor Statistics, Google, BofA Global Research
Bank of America also cautioned there has been a “large mistake band around this prediction” and said that it finds that the unemployment rate going from approximately 11.1% as of end-June into 10.7%.LoadingSomething is loading.