The decline in US GDP in the second quarter reflects the impact of the new epidemic. In March and April, many orders were cancelled in parts of the United States due to social isolation orders.
As business employees and school students continue to work and study remotely, peoples consumption is limited.
However, according to the Bureau of economic analysis, the impact of the pandemic on the overall economy cannot be quantified in the second quarter of GDP because these impacts are usually embedded in the source data and cannot be identified separately.
The decline in real GDP reflects decreases in personal consumption spending, exports, non residential fixed investment, private inventory investment, residential fixed investment, and state and local government spending, but is partially offset by an increase in federal government spending. In the second quarter, US imports also declined.
In terms of subsectors, the private product production industry in the United States fell by 34.4%, the private service production industry by 33.1% and the governments GDP by 16.6% in the second quarter. Overall, 20 of the 22 industries declined in the second quarter.
In the private goods industry, the main reason for the decline of GDP is the shrinkage of durable goods, especially the automobile and parts sectors.
Among the GDP created by the government, the GDP created by local and state governments decreased significantly, which was partly offset by the increase in the federal government.