US: GDP in first quarter contracted by 5% (second estimate) vs. 4.8% expected

Real GDP in first quarter is expected to decline by 5% in first quarter.
US Dollar Index remains calm below 99 after data.

Eren Sengezer FXStreet

The real Gross Domestic Product (GDP) in the US contracted by 5% in the first quarter of 2020, the US Bureau of Economic Analysis' second estimate showed. This reading following the first estimate of -4.8% and came in worse than the market expectation of -4.8%.

Further details of the publication showed that the Personal Consumption Expenditure Prices in the second quarter remained unchanged at 1.3% on a quarterly basis as expected.

Market reaction

This data had little to no impact on the greenback's market valuation. As of writing, the US Dollar Index was down 0.05% on the day at 98.90.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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