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US economy shrank at record-breaking 33% rate last quarter

WASHINGTON (AP) - The U.S. economy shrank at a dizzying 33% annual rate in the April-June quarter - by far the worst quarterly plunge ever - when the viral outbreak shut down businesses, throwing tens of millions out of work and sending unemployment surging to 14.7%, the government said Thursday.

Another 1.4 million American filed for first-time unemployment benefits last week.

The Commerce Department’s estimate of the second-quarter decline in the gross domestic product, the total output of goods and services, marked the sharpest such drop on records dating to 1947.

The previous worst quarterly contraction, a 10% drop, occurred in 1958 during the Eisenhower administration.

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The Associated Press

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