Category: TRENDS ON THE U.S. ECONOMIC FRONT

U.S. retail sales advanced 1.2 percent in July, the third consecutive monthly rise, the U.S. Department of Commerce reported. July sales were 1.7 percent above February’s, the month before the pandemic struck and the economy began to implode. Spending was heavy on appliances, electronics, health products, and restaurant meals. Last month, production at factories, mines,...

Without federal aid, state and local governments will lose about $500 billion in revenue over the next two years, lopping three points off the U.S. GDP, costing four million jobs, and hobbling any U.S. economic recovery, Moody’s Analytics concluded in a research report. And with less tax revenue coming in, there are forecasts states will...

The flood of federal stimulus and support dollars into the economy, combined with tax revenue lost as millions are jobless and businesses fail, has pushed the federal deficit to a record $2.8 trillion so far this fiscal year, which ends 30 September. The current year’s deficit is 224 percent greater than the $867 million logged...

In early August, real yields on U.S. bonds linked to inflation sank below -1 percent, a record low. The sinking yield reflected investors’ fears of a long, slow economic recovery and the abundance of dollars in world markets could ignite inflation. The negative yield continues to drive investors toward stocks and other assets that have...

BRITISH ECONOMY PLUMMENTS 20 PERCENT IN SECOND QUARTER. Britain’s economic output dropped 20.4 percent in the year’s second quarter compared to the first, marking both the country’s largest quarterly drop and its worst recession on record since 1955. The British economy has shrunk to the size it was in 2003. Annualized, the rate of contraction...

About 800 small businesses – defined by the Small Business Administration as having no more than 1,500 workers or less, depending on the sector – have gone bankrupt from mid-February through 31 July. The American Bankruptcy Institute expects the 2020 total could be up 36 percent from last year. The number of businesses permanently shutting down,...

Today, marking its fastest recovery in history, the S&P 500 broke above its all-time high that was set in February before government lockdowns sent the broader market index tumbling. The NASDAQ also hit a record high today, but the Dow was down 66 points. As we have continually noted, there is no relationship between Wall Street and...

MEDIA OUTLETS CUT JOBS AS AD SALES FALL. As elections near in the U.S. and the COVID virus roams the world, more people are eager for news. But, as the cover of this Trends Journal articulates, most of what they consume is “junk news.” Even though ratings are going up, fewer advertisers can afford to...

GOING DOWN, GOING BUST, GOING OUT Each week, in this section, we provide a global overview from various sectors of the economy to illustrate the depth and implications of the COVID lockdowns. HSBC BANK’S PROFITS CRASH. Profits at the worldwide bank that focuses on Asia dove 96 percent in 2020’s second quarter to $192 million...

The economic shutdown has cooled the price of coffee futures and split the market. Futures prices for arabica coffee beans, the upscale variety popular in restaurants and cafés, are down about 9 percent during the shutdown, which closed eateries around the world and clouded their outlook. The price for cheaper robustica coffee, mostly used in...