A restaurant closed in Dallas at the beginning of September 2. (The Associated Press)
The US economy suffered an unprecedented contraction in the second quarter of the year, but appears headed for record growth in the recently concluded period, the government in Washington reported Wednesday.
Gross domestic product, the total production of goods and services, suffered a contraction of 31.4% in the second quarter of the year, an unprecedented figure , the Commerce Department said. A drop of 31.7% had been previously calculated.
The report, the latest for the second quarter, revealed a drop almost four times the previous record, of 10% in the first quarter of 1958, when Dwight Eisenhower was president.
Economists believe that the economy will grow 30% in the current quarter with the reopening of businesses and the return to work of millions of people. The previous growth record was 16.7% in the first quarter of 1950, when Harry Truman was president.
The government will release the GDP report for the July-September quarter on October 29, five days before the presidential election.
President Donald Trump is craving an economy rebound to convince voters to give him a second term, but economists say the future of the economy is uncertain.
Many predict that growth will slow in the last quarter to 4% and could slide back into recession if Congress does not pass another stimulus measure or if the growing number of coronavirus cases restricts economic activity.