U.S. economic activity saw a substantial contraction in the first quarter of 2020, according to a report released by the Commerce Department on Wednesday.
The report said U.S. real gross domestic product decreased at an annual rate of 4.8 percent in the first quarter following the 2.1 percent jump in the fourth quarter of 2019.
The decrease in real GDP in the first quarter reflected negative contributions from consumer spending, non-residential fixed investment, exports, and private inventory investment.
Meanwhile, positive contributions from residential fixed investment, federal government spending, and state and local government spending helped limit the downside.
Consumer spending plunged by 7.6 percent in the first quarter amid a steep drop in spending on services, led by health care, and goods, led by motor vehicles and parts.
The decrease in non-residential fixed investment primarily reflected a decrease in equipment, led by transportation equipment, while the decrease in exports primarily reflected a decrease in services, led by travel.