Coronavirus caused the United States’ economy to shrink by a record 32.9% in the second quarter of 2020. Figures released Thursday morning showed that US Gross Domestic Product (GDP) fell by the greatest amount between April 1 and June 30 since records began in 1947.

GDP is the value of all goods and services produced by a nation, with the previous biggest drop far a smaller 10% recorded in the second quarter of 1958.

The drop in GDP was caused by cuts in consumers buying goods and services, as well as drops in exports, inventories (products such as cars), investment and spending by state as well as local governments.

Americans spent less money on health care, as well as on consumer goods including clothing and footwear, as many people have been left out of work, or have switched to working from home.

Americans also bought far fewer cars, equipment and home goods, with that decline in demand dramatically shrinking the United States’ GDP.

An estimated 35 million people are still claiming unemployment benefits four months after Covid-19 began to sweep the US, up from a record low just over 200,000 the week before the crisis began.

Thursday’s figure was slightly better than the 34.7% drop in GDP predicted by economists, but still spells grim news for Donald Trump, who touted the pre-coronavirus success of the US economy as the top achievement of his administration.

The president had previously warned that the second quarter would be the worst, but predicted a rapid recovery for the US economy over the third and fourth quarters, which span the remainder of 2020.

But that prediction is now facing doubts amid surging coronavirus cases in many US states which initially seemed to have missed the worst of the outbreak. California, Florida, Texas and Arizona bore the initial brunt of the June surge, which has now begun moving into other midwestern states including Oklahoma.

That has seen some state governors pause or roll back reopening plans, leaving people who had returned to work in bars, restaurants and shops left out of work again. The United States has so far recorded more than 4.5million coronavirus infections, and more than 153,000 deaths – more than any other country on Earth.

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