First quarter 2020 GDP: U.S. economy contracted for the first time in six years U.S. gross domestic product turned negative for the first time since 2014 in the first three months of the year as the coronavirus pandemic broadened out across the globe and country in March, dragging output to a near standstill and driving a deep contraction in consumer spending. The U.S. Bureau of Economic Analysis (BEA) released its advance estimate of first-quarter 2020 GDP Wednesday morning. Here were the main metrics from the report, compared to consensus expectations compiled by Bloomberg: Estimates for the size of the first-quarter contraction spanned a wide range, as economists grappled to assess the extent of the damage caused by an unprecedented set of business operational halts and widespread stay-in-place orders. The reported 4.8% contraction in GDP was the largest drop since late 2008. Ahead of the report, a number of government data releases already underscored the economic damage invoked by the coronavirus pandemic and widespread business closures. A historic 26 million individuals filed for new unemployment insurance claims over the past five weeks, with new claims appearing to have peaked in late March. Retail sales plunged by a record 8.7% in March, suggesting a sharp drop-off in discretionary spending as social distancing measures overtook the country. Consumer spending comprises about 70% of U.S. economic activity. The manufacturing sector showed similar signs of distress, with output falling by the most since 1946 in March. Durable goods orders sank by the most since August 2014 as commercial aircraft orders sank, reflecting shriveled demand for air travel and, more broadly, supply chain disruptions for the manufacturing sector as a whole. Many expect the economic damage will only deepen in the second quarter, affirming that the U.S. is in the midst of a downturn. A recession is defined as two consecutive quarters of negative GDP growth. Federal Reserve to announce policy update this afternoon The Fed is scheduled to release its latest policy statement at 2 p.m. ET followed by Powell’s press conference at 2:30 p.m. ET.