This Week's State Of The Economy - What Is Ahead? - 05 June 2020

By: Taro Chellaram /Wells Fargo Economics & Financial Report/Jun 09, 2020

This Week's State Of The Economy - What Is Ahead? - 05 June 2020

U.S. - Was April the Bottom?

  • Data this week continued to suggest the U.S. economy hit rock bottom in April. Still, it is a long road to recovery and the pickup in economic activity will be gradual.
  • In what was a surprising jobs report, the U.S. labor market added 2.5 million jobs in May and the unemployment rate fell to 13.3%. The bottom line: hiring started to pick-up earlier than expected as states began to loosen restrictions in May.
  • Survey evidence from the ISM further supports the notion that economic activity has bottomed, as does mobility data, though they exemplify just how gradual the rebound may be.

 

Global - Trio of Central Bank Meetings Dominate the Week

  • There was a trio of key central bank meetings this week, with the Reserve Bank of Australia (RBA) kicking the week off. As expected, the RBA maintained its main policy rate and target for the three-year sovereign bond yield.
  • The European Central Bank increased the Pandemic Emergency Purchase Program by €600 billion, extended the timeline for purchases to June 2021 and announced maturing holdings would be reinvested until at least the end of 2022.
  • The Bank of Canada left its main policy rate unchanged and modestly scaled back some provisions aimed at providing liquidity in financial markets.



This Week's State Of The Economy - What Is Ahead? - 22 November 2019

Minutes from the October FOMC meeting indicated the Fed is content to remain on the sidelines for the rest of this year as the looser financial conditions resulting from rate cuts at three consecutive meetings feed through to the economy.

This Week's State Of The Economy - What Is Ahead? - 05 February 2021

Nonfarm employment rebounded in January, with employers adding 49,000 jobs following the prior month\'s 227,000-job drop.

This Week's State Of The Economy - What Is Ahead? - 22 January 2021

Housing starts jumped 5.8% during December. Single-family starts soared 12%, while multifamily starts dropped 13.6%.

This Week's State Of The Economy - What Is Ahead? - 20 November 2020

The international economic news over the past week has been somewhat mixed. On the positive side, China’s October data showed ongoing growth in manufacturing and firming retail and service sector activity.

This Week's State Of The Economy - What Is Ahead? - 16 October 2021

The first economic data released this week in the United States reinforced the theme that labor supply and demand are struggling to come into balance.

This Week's State Of The Economy - What Is Ahead? - 23 July 2021

In the biggest financial news this week not connected to college football conference realignment, July\'s NAHB Housing Market Index slipped one point to 80.

July 2020 Economy At A Glance

The recent surge in COVID-19 cases indicates that elected officials re-opened the economy too soon, that too many Americans are flaunting social distancing guidelines, and that the virus is likely to be around longer than we’d hoped.

This Week's State Of The Economy - What Is Ahead? - 20 March 2020

Daily life came to a screeching halt this week as governments, businesses and consumers took drastic steps to halt the COVID-19 pandemic.

The Regional Breakdown Of A Labor Market In Meltdown

Employment fell in all 50 states and 43 states saw their unemployment rate rise to a record in April. The damage is already hard to fathom-a 28% unemployment rate in Nevada and still another month of job losses ahead.

This Week's State Of The Economy - What Is Ahead? - 27 September 2019

The release of the transcript of President Trump\'s phone conversation with Ukraine President Volodymyr Zelenskiy and the whistle blower complaint overshadowed most of this week\'s economic reports and took bond yields modestly lower.


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