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The ripple effect of COVID-19 on how we shop, work and shape our economy.

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What To Know

America is the largest economy in the world & its influence is far-reaching.

Multiple economic reports this week reflect the statistical impact of COVID-19 on the U.S. economy.

Much of this data considered the first three months of 2020. Social distancing went into effect for only part of that period, in March.

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What You Spend

A measure on consumer spending showed a significant drop in March – The biggest month-to-month drop on record.

Why It Matters: American spending fuels the overall U.S. economy. Economists estimate consumers are responsible for two-thirds or 70% of economic activity.

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The Economy

A measure of economic growth (GDP) showed a contracting or shrinking economy, rather than an expanding economy.

Why It Matters: Two consecutive quarters (a 3-month-period) of GDP commonly signals a recession. Before this drop, the U.S. had experienced the longest period of economic expansion in history.

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The Job Market

More than 30M Americans have filed for unemployment in the last six week period.

Why It Matters: Jobs fuel spending, spending fuels the economy. One estimate shows 1 out of 5 workers impacted by COVID-19. While some may receive unemployment benefits, others may not and be excluded from these numbers.

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Something To Consider

Economic data, in general, reflects the past – a snapshot in time.

By the time data shows a recession, America will have already been in it.

Likewise, a recovery won’t be noted until after it’s already underway.

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April is the first full month the U.S. was under federal social distancing guidelines. A new jobs report will reveal the updated unemployment rate, considering April, on Friday, May 8th.  

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Sources

COVID-19 Making Masks The American Way: WATCH

COVID-19 And Your Money: READ 

COVID-19 and Your Meat: READ