Publications

U.S. Economic Indicators

The U.S. economy lost 20.5 million jobs in April, fewer than consensus expectations. The unemployment rate increased to 14.7% – the highest rate since the series began in 1948 – and labor force participation declined from 62.7% to 60.2%. BLS Report

U.S. News

The Wall Street Journal reports that nearly two weeks after the federal government made an additional $310 billion available for small business aid, more than 40% still remains available – suggesting demand for the loans is cooling. Likely the most significant factor behind slowing demand is that small business are concluding that the loan requirements are incompatible with their needs. WSJ

Bloomberg reports that despite record-low mortgage rates, mortgage credit availability has fallen by more than 25% since February as risk-averse lenders tighten standards during the coronavirus crisis. Reduced lending could further dampen economic activity by weighing on home sales as states relax stay-at-home orders and the traditional buying season begins.  Bloomberg

U.S. Economic Indicators

Initial jobless claims fell 677,000 to 3,169,000 last week. The four-week moving average fell 861,500 to 4,173,500. DOL Report

Nonfarm business sector labor productivity decreased 2.5% in Q1 but rose 0.3% compared to a year ago. Hours worked decreased 3.8% and unit labor costs rose 4.8%. BLS Report

U.S. News

The Wall Street Journal reports that House Democrats are finalizing a new coronavirus relief package expected to include more than $750 billion in aid for state and local governments and another round of direct support for Americans. Lawmakers have indicated that the bill could be ready for a House vote as early as next week. WSJ

U.S. Economic Indicators

The ADP Employment Report shows that private-sector employment decreased by 20,236,000 jobs in April, in line with consensus expectations. The service sector lost 16,007,000 jobs, while the goods-producing sector lost 4,229,000 jobs. ADP Report

U.S. News

The Financial Times reports that Washington is considering ramping up economic measures against China amid rising anger over Beijing’s handling of the coronavirus outbreak. U.S. officials are considering new curbs on supply chains and investment flows, with particular focus on limiting technology and pharmaceutical supply chain exposure to China. FT

U.S. Economic Indicators

The U.S. trade deficit increased from $39.8 billion (revised) in February to $44.4 billion in March. The goods deficit rose by $4.6 billion while the services surplus fell by $0.1 billion. Census Bureau Report

The ISM Non-Manufacturing Index fell 10.7 points to 41.8 in April, indicating the first service sector contraction since December 2009. The New Orders Index fell 20 points to 32.9, while the Employment Index declined 17 points to 30.0. ISM Report

U.S. News

The Wall Street Journal reports that California has become the first state to borrow from the federal government to allow it to continue paying out rising claims for unemployment benefits, with other states including Illinois and Connecticut expected to follow soon. Nearly half of states entered the current downturn without sufficient unemployment trust funds to withstand a year-long recession, much less the unprecedented spike in claims and plunge in tax revenues from the present crisis. WSJ

U.S. Economic Indicators

New factory orders for manufactured goods fell 10.3% in March following a 0.1% (revised) decrease in February. New orders excluding transportation were down 3.7%, while new orders for nondefense capital goods excluding aircraft fell 0.1%. Census Bureau Report

U.S. News

The Washington Post reports that the U.S. housing and rental market has fallen into a severe crisis as surging unemployment and delayed jobless benefits and stimulus checks threaten the ability of millions of Americans to make May rent and mortgage payments. Without billions in federal relief for homeowners, tenants, and landlords, many Americans may face eviction as eviction moratoriums are lifted and forbearance periods run out. WaPo

According to the Wall Street Journal, U.S. businesses are calling for Congress to pass legislation shielding companies from virus-exposure lawsuits as the economy begins to emerge from its partial shutdown. The extent of liability protection has become a major point of contention as lawmakers begin working on the next round of stimulus funding for households and businesses. WSJ