US Q1 GDP Sags To -5% QoQ Annualized As Virus Lockdown Helps Crush Economy (Corporate Profits Shrink 14% In Q1)

Oof.

US GDP growth QoQ annualized plunged to -5% in the first quarter. Still not to the depths of The Great Recession (aka, housing bubble burst and ensuing financial crisis).

But you ain’t seen nothing yet.

The Atlanta Fed GDPNow estimate for Q2 GDP is -41.907%.

Why will Q2 look like a disaster? Take a peek at April’s preliminary durable goods orders: down -17.2%. Take out transportation and the decline is “only” -7.4%. In other words, the print (actual) are lower than the surveys. And while jobless claims clocked in at 2.12 million, it is the first decline in jobless claims so far.

Corporate profits shrank by 14% in Q1.

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