Second-quarter real gross domestic product growth number was as expected at negative 1.0%, marking a fourth consecutive down quarter and the fifth drop in six periods in the worst showing since comparable records began in 1947, and confirming the most severe recession in more than 25 years.

GDP second-quarter prices printed up 0.2%, and personal consumption expenditure prices rose 1.3%. PCE prices excluding food and energy were up 1.1% after a 0.5% rise in the first quarter.

The savings rate stands at 5.2%, its highest since 1998. Time will tell if this is a permanent shift caused by stock market and housing losses, or whether consumers will resume spending ahead.

— Market News International

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