The U.S. economy shrank at a record-breaking rate in the second quarter, according to newly-released data on Thursday.
The annual rate of shrink reached 33% in the quarter that includes the months of April through June. It’s the worst plunge ever recorded.
The Commerce Department estimates that the decline was largest since 1958 during the Eisenhower administration.
The economy had already shrunk 5% during the first quarter of economic activity of 2020.
It was all spurred by the Coronavirus Pandemic, which ended an 11 year economic expansion.
Unemployment has surged, and even as economies restart across the U.S. jobless claims are on the rise.
Business investment and residential housing also suffered sharp declines last quarter. Government spending, diminished by a loss of tax revenue that forced layoffs. Spending by consumers declined about 34%, and since that accounts for approximately 70% of all economic activity in the U.S. it meant losses were going to be significant.
Tens of millions are still without jobs across the U.S.