Evidence of the coronavirus’ devastating impact on the U.S. economy has been steadily emerging, and the signs have grown ominous.
Sales at stores and restaurants plunged in March by the largest amount on records dating back to 1992. U.S. retail sales plummeted 8.7% in March, a record drop as the viral outbreak closed down thousands of stores and shoppers stayed home.
Consumer spending specifically accounts for more than two-thirds of all economic growth.
Sales fell sharply across many categories: Auto sales fell 25.6%, while clothing store sales collapsed, dropping 50.5%. U.S. consumer confidence has plunged and the vast majority of Americans are hunkered down at home under shelter in place orders.
Grocery store sales did jump by nearly 26% as Americans hoarded food and consumer items. A category that mostly includes online sales rose 3.1%.
The nation’s industrial output also fell by the largest amount since the end of World War II and the outbreak keeps ravaging the global oil market.
That was just Wednesday’s news. Jennifer Lee is a senior economist at BMO Capital Markets. She says she's never seen anything like it.
