A record-setting drop in the U.S. economy from April to June has given way to an increasingly tepid-looking rebound as consumers appear to pull back and businesses slow rehiring, data from a variety of high-frequency sources and macro analysts indicate.
WASHINGTON During a blue-sky moment in 2018 near the end of a decade-long economic expansion, it was the United States that helped pull the world along as the extra cash from tax cuts and government spending flowed through domestic and global markets. | Video
The surge in U.S. coronavirus cases is beginning to weigh on economic activity, the head of the Federal Reserve said on Wednesday, and he promised the U.S. central bank would "do what we can, and for as long as it takes," to limit damage and boost growth. | Video
In a fast-changing global pandemic, this was not the turn U.S. Federal Reserve officials hoped for in early June, when their forecasts showed guarded optimism for a sharpish early economic rebound and steady slow growth to follow.
The number of outright failures of U.S. small businesses in the first months of the coronavirus pandemic was comparatively modest, but the months ahead look far grimmer as cash balances dwindle, federal help expires, and the disease surges back.
A stodgy U.S. recovery showed little sign of accelerating over the last week with hints emerging that the quick job gains of May and June may be fading, according to high frequency data and analysis from companies, forecasters and government analysts.
(Removes incorrect reference in paragraph 8 to Oklahoma as part of the Dallas Federal Reserve Bank's district)
The surge of U.S. coronavirus cases that began in June was preceded in May by a large jump in consumer interest in social activities like dining out and going to bars and gyms, website Yelp reported on Wednesday in an analysis of searches and reviews conducted on its platform.