The fallout from the deadly coronavirus caused the U.S. economy to contract 4.8 percent from January through March, the deepest decline since the depths of the financial crisis more than a decade ago, the Commerce Department said Wednesday.
The U.S. economy almost certainly entered a recession with consumer and business spending nose-diving in the first quarter, as much of the nation went into lockdown to stem the spread of the global pandemic.
Spending by Americans tumbled 7.6 percent and business investment shrank 8.6 percent, according to the Commerce Department report, which gives the first comprehensive look at how painful the economic fallout from the pandemic has been. Although Americans flooded grocery stores to buy food and supplies, it was not nearly enough to offset lost spending on dining out, car sales, entertainment and more.
