Record financial dive in US, grim occupations numbers uncover infection cost The coronavirus pandemic sent the U.S. economy plung...
Record financial dive in US, grim occupations numbers uncover infection cost
The coronavirus pandemic sent the U.S. economy plunging by a record-shattering 32.9% annual rate half-moon and remains inflicting damage across the country, squeezing already struggling businesses and forcing a wave of layoffs that shows no sign of abating.
The economy’s collapse within the April-June quarter, stunning in its speed and depth, came as a resurgence of the viral outbreak has pushed businesses to shut for a second time in many areas. The government’s estimate of the second-quarter fall within the gross domestic product has no comparison since records began in 1947. The previous worst quarterly contraction — at 10%, but a 3rd of what was reported Thursday — occurred in 1958 during the Eisenhower administration.
Data source-APNews
Soon after the govt issued the awful economic data, President Donald Trump diverted attention by suggesting a “delay” within the Nov. 3 presidential election, supported his unsubstantiated allegations that widespread mail-in voting will end in fraud. The dates of presidential elections are enshrined in federal law and would require an act of Congress to vary .
So steep was the economic fall half-moon that the majority analysts expect a pointy rebound for the present July-September period. But with coronavirus cases rising within the majority of states and therefore the Republican Senate proposing to reduce aid to the unemployed, the pain is probably going to continue and potentially worsen within the months ahead.
The plunge in GDP “underscores the unprecedented hit to the economy from the pandemic,” said Andrew Hunter, senior U.S. economist at Capital Economics. “We expect it'll take years for that damage to be fully recovered.”
That’s because the virus has taken square aim at the engine of the American economy — consumer spending, which accounts for about 70% of activity. That spending collapsed at a 34.6% annual rate half-moon as people holed up in their homes, travel about froze, and shutdown orders forced many restaurants, bars, entertainment venues and other retail establishments to shut .
The Dow Jones Industrial Average closed quite 200 points down — though earlier it had seemed set for a way bigger fall.
Tentative hopes for a swift recovery are diminished by a resurgence of viral cases within the South and therefore the West that has forced many businesses to shut again or reduce occupancy. Between summer solstice and July 19, for instance , the proportion of Texas bars that were closed shot from 25% to 73%. Likewise, 75% of flannelbush shops were shuttered July 19, up from 40% just every week earlier, consistent with the info firm Womply.
The second surge does appear to be leveling off, but cases are still rising in on the brink of 30 states.
The plunge in GDP “underscores the unprecedented hit to the economy from the pandemic,” said Andrew Hunter, senior U.S. economist at Capital Economics. “We expect it'll take years for that damage to be fully recovered.”
That’s because the virus has taken square aim at the engine of the American economy — consumer spending, which accounts for about 70% of activity. That spending collapsed at a 34.6% annual rate half-moon as people holed up in their homes, travel about froze, and shutdown orders forced many restaurants, bars, entertainment venues and other retail establishments to shut .
The Dow Jones Industrial Average closed quite 200 points down — though earlier it had seemed set for a way bigger fall.
Tentative hopes for a swift recovery are diminished by a resurgence of viral cases within the South and therefore the West that has forced many businesses to shut again or reduce occupancy. Between summer solstice and July 19, for instance , the proportion of Texas bars that were closed shot from 25% to 73%. Likewise, 75% of flannelbush shops were shuttered July 19, up from 40% just every week earlier, consistent with the info firm Womply.
The second surge does appear to be leveling off, but cases are still rising in on the brink of 30 states.
Many states have imposed restrictions on visitors from the states that have reported high levels of cases, hurting hotels, airlines and other industries that depend on travel.
That has led to mammoth job losses. during a sign of how weakened the work market remains, quite 1.4 million laid-off Americans applied for unemployment benefits last week. it had been the 19th straight week that quite 1 million people have applied for jobless aid. Before the coronavirus erupted in March within the U.S., the amount of usa citizens seeking unemployment checks had never exceeded 700,000 in anybody week, even during the good Recession.
Data source-APNews
The pain could soon intensify further: A supplemental $600 in weekly federal unemployment benefits is expiring, and Congress is squabbling about extending the help , which can probably be done at some reduced level of payment.
“The risk of temporary job losses becoming permanent is high from repeated closures of companies ,” said Rubeela Farooqi, chief U.S. economist at High Frequency Economics. “That could end in a good slower pace of recovery.”
The Trump campaign said during a statement that the GDP report reflected a period “when much of the economy was essentially closed right down to save many American lives.”
The economic harm from the virus is extending well beyond the us . On Thursday, Germany reported that its GDP tumbled 10.1% half-moon . it had been the most important such drop since records began in 1970. And Mexico’s GDP sank 17.3% half-moon , also a record. Unlike the U.S. figures, those numbers aren't annualized rates.
With little hope of a swift recovery within the U.S., the image looks dim for several of the jobless. Since she was laid off by a tech industry nonprofit in mid-May, Miranda Meyerson has been trying to seek out another job and to check in for unemployment benefits.
“It’s just incredibly frustrating and demoralizing,” she said. Potential employers seem to be delaying hiring decisions.
“Nobody gets back to you,” said Meyerson, 38. “You desire there’s only goodbye you'll submit (applications) into a void.’’
Meyerson and her partner had moved from ny to Oakland, California, in March. The move complicated her efforts, thus far futile, to gather benefits from a swamped California unemployment benefits system.
Many economists note that the economy can’t absolutely recover till the pandemic is defeated — some extent stressed weekday at a conference by FRS System System System Chair Hieronymus Powell.
He warned that the infectious agent epidemic has been endangering a modest economic recovery that , as a result, the Fed plans to remain interest rates fastened close to
“A poorly managed health scenario and depressed incomes means that the economy risks a double-dip recession while not pressing business enterprise aid,” aforesaid Gregory Daco, chief U.S.
“A poorly managed health scenario and depressed incomes means that the economy risks a double-dip recession while not pressing business enterprise aid,” aforesaid Gregory Daco, chief U.S.
Daco said the expiration of the $600 in federal unemployment aid means many households could suffer a loss of income within the range of fifty to 75%. that would further weaken spending, thereby fueling a downward economic spiral.
“The economy,” Daco said, “is getting to be running on little or no fuel at some extent when the recovery has really stalled.”
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