U.S. Economic News
May 5, 2020
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