31/07/2020

US economy suffers biggest blow since the Great Depression


USD

The US economy has suffered its biggest blow to GDP since the Great Depression in the second quarter as the real effects of the Covid-19 pandemic are now being shown. Gross Domestic Product collapsed by 32.9% in the last quarter, the biggest contraction since records began to be kept in 1947. Previously, the all-time decline was 10% back in 1958. This comes despite activity picking up in May as the brief momentum has been stalled by the increase in coronavirus cases where businesses have been forced to close or pause reopenings.

Five years of growth have been effectively wiped out and more pressure is now coming for the White House and Congress to agree on a new stimulus package. However, President Trump has stated that he is in no hurry and is also starting to flag the possibility of delaying the November presidential election.

Key announcements

10:00 – EUR – Core Consumer Price Index (YoY) (Jul); expected to remain at 0.8%
10:00 – EUR – Consumer Price Index (YoY) (Jul); expected to fall to 0.2% from previous 0.3%
10:00 – EUR – Gross Domestic Product (QoQ) (O2); expected to contract by 12%
10:00 – EUR – Gross Domestic Product (YoY) (O2); expected to contract by 14.5%


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