US: Real GDP contracts by 31.4% in Q2 vs. 31.7% expected

• Economic activity in the US declined by 31.4% in Q2.
• US Dollar Index clings to modest daily gains above 94.00.

The United States' Real Gross Domestic Product (GDP) contracted at an annual rate of 31.4% in the second quarter, the US Bureau of Economic Analysis' final (third) estimate showed on Wednesday. This reading came in slightly better than the previous estimate and the market expectation of -31.7%.

Market reaction

The US Dollar Index showed no immediate reaction to this data and was last seen gaining 0.2% on the day at 94.05.

Key takeaways from the press release

"The upward revision with the third estimate primarily reflected an upward revision to personal consumption expenditures (PCE) that was partly offset by downward revisions to exports and to nonresidential fixed investment."

"Current-dollar GDP decreased 32.8%, or $2.04 trillion, in the second quarter to a level of $19.52 trillion. In the first quarter, GDP decreased 3.4%, or $186.3 billion."