The final Gross Domestic Product numbers are out for the second quarter and COVID-19 appears to continue to impact U.S. spending.

Certified Financial Planner Tim Heisterkamp of Journey Financial in Jefferson says the Gross Domestic Product – finished consumer items made in the U.S. – fell 32.9-percent for the second quarter. He compares that figure to 2019.

“In 2019, the total GDP in the United States was $21.4 trillion. So if this 33-percent would continue for the rest of the year that would mean that the GDP in the United States would contract by almost $7 trillion. That is a lot of money that is not going towards production of goods and services.”

Heisterkamp points out part of the large decline in the GDP has to do with unemployment. He says as of Thursday, 17 million people were receiving ongoing unemployment claims. However, Heisterkamp notes personal incomes were up almost $1.4 trillion for the second quarter, which he believes has mostly to do with the federal government’s stimulus and unemployment payments. 

“And then what people did with that money was really interesting. Of course some people spent it. You’ll see some areas in the economy where businesses have been very good, like buying boats and campers. And other areas like going to hotels, going to concerts, and going to restaurants, people just didn’t do (them). In the end, personal consumption – the amount of money that people were spending – actually contracted by 25-percent.”

Heisterkamp believes the possibility of a second round of stimulus by the federal government may help to continue to carry the economy forward during COVID-19 times.