US: GDP in first quarter contracts by 5% (third estimate) as expected
|- US' real GDP in first quarter declined by 5% on a quarterly basis.
- US Dollar Index stays in the positive territory near 97.50 after the data.
The real Gross Domestic Product (GDP) in the US contracted by 5% in the first quarter of 2020, the US Bureau of Economic Analysis' (BEA) third estimate showed on Thursday. This reading matched the previous estimate and the market expectation.
"The decline in the first-quarter GDP reflected the response to the spread of COVID-19, as governments issued "stay-at-home" orders in March," the BEA explained in its publication. "This led to rapid changes in demand, as businesses and schools switched to remote work or cancelled operations, and consumers cancelled, restricted, or redirected their spending."
The BEA further noted that the full economic effects of the COVID-19 pandemic cannot be quantified in the GDP estimate for the first quarter of 2020 because the impacts are generally embedded in source data and cannot be separately identified.
Market reaction
This data doesn't seem to be having a significant impact on the greenback's performance. As of writing, the US Dollar Index was up 0.3% on the day at 97.50.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.