“Lockdowns will test the patience and endurance of many Americans“– Paul Ebeling
Many American workers and businesses face a months-long survival test until COVID vaccines become widely available as spending dives with record daily cases prompting a sudden return to lockdowns.
As the result of massive PCR testing, more than 1-M virus cases were reported last wk, causing some states including Michigan, New Mexico and California to set tighter rules on movement and commerce.
Lots of businesses: restaurants, hotels, retail shops, bowling alleys and theaters will confront a harsh Winter, even if they are able to remain open . Many workers face the holidays with food and shelter concerns.
Consumer spending, which accounts for 72% of the US economy, may decline 3.5% in December and another 1% in January. That could lead to a contraction of economic growth in early Y 2021, the end of unemployment benefits alone will cut US growth in Q-1 by 1%.
This new wave of lockdowns darkens the outlook further.
This week, Philadelphia set some of the nation’s tightest safety rules to stop the ‘pandemic’s’ Winter surge, closing high schools, colleges and museums and ending indoor restaurant dining. Even before that, 25% of residents reported falling behind on mortgage or rent payments, and 40% who were employed when the chaos began said they had lost their jobs or had hours or pay cut, according to a Pew Charitable Trusts poll.
Many people are staying home, and saving their money. Spending by 30-M JPMorgan Chase credit cardholders fell 7.4% in the week through 9 November from a year earlier
President Trump, and Key business leaders blame shutdown orders for hurting economic growth, and economist Bruce WD Barren says most losses are closely related to consumers’ fears and anxiety.
“The lockdowns were not what killed the economy. The People’s fear of getting the disease did, this new wave of cases threatens the V-shaped recovery, without question” he added.
Have a healthy day, Keep the Faith!