The US economy plummeted at a record pace in the spring but is poised to hit a record rise in the quarter just ended.
The Commerce Department reported Wednesday that gross domestic product, the economy’s total output of goods and services, fell at a rate of 31.4% in the April-June quarter, only slightly changed from the 31.7% decline. estimated a month ago.
The new report, the government’s latest look at the second quarter, showed a nearly four-fold drop than the previous record holder, a 1
Economists believe the economy will expand at an annual rate of 30% this quarter as businesses reopen and millions of people resume jobs. That would shatter the old record of quarterly GDP growth, an increase of 16.7% in the first quarter of 1950, when Harry Truman was president.
The government will not release its July-September GDP report just concluded until October 29, just five days before the presidential election.
While President Donald Trump is counting on an economic rebound to persuade voters to give him a second term, economists have said the future of the economy is far from certain.
Many predict that growth will slow significantly over the last three months of this year at a rate of around 4% and may actually fall back into a recession if Congress fails to pass another stimulus measure or if a growing number of coronavirus cases drastically reduce the economy’s activity.