By Scott J. Brown, Ph.D., Raymond James
The Possibility of Permanent Scarring – The pandemic had a significant impact on household spending in March and April, with a sharp contraction in consumer services. The relaxation of social distancing guidelines has contributed to a sharp-but-partial rebound in May and June. However, that relaxation appears to have gone too fast. COVID-19 cases are up sharply in recent weeks. While many of the unemployed have returned to work, most haven’t, and newly laid-off workers have continued to join the ranks of the unemployed. The need for further fiscal support is apparent.
This Week – The economic calendar thins.