The economy shrank in the second quarter with an annual rate of 31.7 percent, according to the Department of Commerce’s second estimate, 1.2 points better than the first estimate of 32.9 percent.
The changed number remains the worst quarterly shrinkage on record, as a reflection of the sudden shutdown of the economy, as the new coronavirus pandemic led to widespread closures, locks and precautions for health keeping people at home.
The updated estimate, which includes more complete data, also found that wages in the first quarter had grown less than previously estimated. Wages and salaries grew $ 103.6 billion in that quarter, less than $ 3.4 billion from previous estimates.
The pandemic took place in the last weeks of the first quarter, which saw a 5 percent decline in annual gross domestic product.
Economists expect a major jump in the third quarter as the economy crawls out of the deep hole caused by the pandemic.
But even with a blockbuster reading expected in the third quarter, which is announced just days before the November elections, the economy is not expected to return to its pre-COVID level for several years.
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