- As many states across the United States have started to slowly reopen, economic data continues to show the devastation of the coronavirus pandemic.
- Economists agree that the United States is already in a recession. Now they are assessing what form a potential recovery could take.
- Many reports this week have set new records. But some have shown glimmers of hope that a recovery could occur as some states begin to reopen.
- Here are seven economic signals that have issued warnings this week.
- Visit the Business Insider homepage for more stories.
In just two months, the U.S. economy has been devastated by the coronavirus pandemic and sweeping shutdowns to contain the spread of the disease.
Last week’s April jobs report showed the US economy lost a record 20.5 million jobs and the unemployment rate climbed to 14.7%, the highest since the depths of the Great Depression. Since the mind-boggling report, more have been released showing further damage to the US economy.
Economists and industry watchers agree that the United States has been plunged into a
coronavirus pandemic stops. Now, all eyes are looking at US economic data to measure the extent of the damage and weigh the form that a recovery could take.
Initially, some argued that a quick V-shaped recovery was possible. But as coronavirus-induced layoffs persist and many consumers are still stranded at home, it now looks like any rebound will be more moderate.
There have also been some glimmers of hope as many states across the country slowly reopen. For example, even though the April jobs report showed devastating losses, 18.1 million workers were classified as temporarily unemployed, suggesting they may be able to re-enter the workforce quickly when lockdowns are lifted.
Read more: ‘We’ve got depression in our hands’: CIO of $ 150 million bearish fund says market will hit new lows after current rebound ends – and warns ‘much more pain’ ‘remains to come
Additionally, some reports this week – albeit dismal – could represent a low point before a rebound. For example, April retail sales posted a second record decline, but may not record a third.
“This report was always going to be terrible,” Pantheon Macroeconomics’ Ian Shepherdson said in a note Friday. “But that probably hits the mark, given the gradual reopening that is currently underway or about to be.”
Below are the seven indicators released this week and what they tell us about the US economy: