GDP sees steepest drop in 70 years

Alia Paavola -

Gross domestic product in the U.S. plunged 32.9 percent on an annualized basis in the second quarter, a rate that is considered the steepest decline in more than 70 years, according to an advance estimate released by the Bureau of Economic Analysis. 

The drop in GDP is attributed to contractions in personal consumption, exports, inventories, investment and spending by state and local governments.

The downturn in the second quarter came as states imposed lockdowns in March and April to help stop the spread of COVID-19. Although states began reopening in May and June, it was not enough to offset the dive in April, according to the estimates. 

Read the full estimate here. 

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