Accommodation and food services; finance and insurance; and health care and social assistance industries were the leading contributors to the 5.0 percent (annual rate) decrease in gross domestic product (GDP) in the first quarter of 2020.
All sectors of the U.S. economy contributed to the decrease, led by a decline in private services-producing industries. The decline in first-quarter GDP reflected the response to the spread of COVID-19, as governments issued “stay-at-home” orders in March. This led to rapid changes in production, as businesses and schools switched to remote work or canceled operations, and consumers and businesses canceled, restricted, or redirected their spending. For more information, see ”Federal Recovery Programs and BEA Statistics: COVID-19 and Recovery” on the BEA website.
Overall, 17 of 22 industry groups contributed to the first-quarter decline in real GDP. Of the five industry groups that offset the decline in the first-quarter real GDP, agriculture, forestry, fishing, and hunting was the largest contributor, increasing 15.5 percent.
For accommodation and food services, real value added—a measure of an industry’s contribution to GDP—decreased 26.8 percent, primarily reflecting a decrease in food services and drinking places.
Finance and insurance decreased 9.0 percent, primarily due to a decrease in insurance carriers and related activities.
Health care and social assistance decreased 7.8 percent, primarily reflecting decreases in ambulatory health care services and in hospitals.
Arts, entertainment and recreation decreased 34.7 percent, primarily reflecting a decrease in performing arts, spectator sports, museums, and related activities.
For more information, read the full report.