The U.S. government just released reports containing data about the national economy for the month of March 2020.
Within the economic data of this current government report lies a bleak state of affairs, which according to top economists, is worse than what the experts on Wall Street ever imagined. Patti Domm, the Markets Editor for CNBC, published a report on Wednesday (April 15) that gave a sobering summation on the U.S. government’s economic data from last month.
“March retail sales fell 8.7%, the most ever in government data, and New York regional manufacturing activity hit an all-time low, declining to a shocking negative 78.2%,” Domm wrote in her report.
“Industrial production slipped 5.4%, the largest decline since 1946, and manufacturing was down 6.3%, a record reflecting in part the 28% decline in auto production as plants shut down,” she added.
Consumer spending and manufacturing are major drivers of the national economy. The shutdown of many businesses due to the coronavirus outbreak in the U.S. has created an economic condition that is not sustainable, according to Dr. Boyce Watkins, a former finance professor at Syracuse University and the founder of the Your Black World news and business network.
“We’re not headed into a Great Depression. We’re headed into a greater depression,” Dr. Watkins said in a Wednesday (April 15) video to followers on his digital Dr. Boyce TV channel.
“We’re not headed into something that is just as bad as the 1930s. We’re headed into something that we never saw in the 1930s. I’m still trying to come to terms with what they’re thinking by shutting everything down. [It would be great] if we could gradually open parts of the economy back up in sections,” he added.
An incremental open up of key economic sectors could certainly stem the financial bleeding currently happening in America. The question then would be when that incremental open up of the economy would begin in the near future; given the grim, evolving scenario of COVID-19.
One could definitely surmise that the government’s second quarter data-taking process about the economy will be even more critical going forward.