U.S. Economic Indicators
April 29, 2020
U.S. Economic Indicators
The advance estimate of Q1 GDP indicates that the U.S. economy contracted at an annualized rate of 4.8%, a greater contraction than consensus estimates. The decline in real GDP reflects negative contributions from consumer spending, business investment, and private inventories that were partly offset by positive contributions from residential investment, government spending, and net exports. BEA Report
The National Association of Realtors pending home sales index fell 20.8% in March (down 16.3% Y/Y). NAR reports that the housing market is grappling with the coronavirus-induced shutdown which has reduced new listings and contracts. NAR Report
U.S. News
According to the Financial Times, many U.S. restaurants that applied for loans through the Paycheck Protection Program are likely to return the funds as it becomes clear that the program’s requirements are poorly suited to the restaurant industry. The requirement that loans be spent within eight weeks and primarily on payroll render the loans less effective for the capital-intensive, cash-strapped restaurant industry. FT