But on Thursday one economic data report that pointed to an "unprecedented" decline in activity in both the U.S. services and manufacturing sectors might've been "relatively" good news.
IHS Markit's flash reading on business output in April published Thursday hit a record low, with the composite output reading falling to 27.4, the lowest on record. Readings over 50 for this measure indicate expansion and readings below 50 indicate a contraction in activity.
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Even partial view of economic damage from virus is massive
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The outbreak of the coronavirus has dealt a shock to the global economy with unprecedented speed. Following are developments Friday related to the global economy, the work place and the spread of the virus.
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GOVERNMENT & CENTRAL BANKS: Governments around the globe are laying out billions of dollars to stabilize their economies even as revenue from taxes seizes up .
— The famous French cafes, along with restaurants and bars, will remain closed at least through May. In support, Finance minister Bruno Le Maire said the government is further deferring tax payments and extending short-term unemployment payouts to support those businesses.
Coronavirus pandemic's effect on global economy in 7 charts
To stem further spread of the virus, authorities around the world implemented measures to lock down countries and cities to varying degrees. That includes closing borders, shutting schools and workplaces, and limiting large gatherings.
"This is a truly global crisis as no country is spared," Gita Gopinath, the IMF's chief economist, wrote in a blog post earlier this month.
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Many economists have warned that lockdown measures around the world will accelerate job losses — that's already showing up in unemployment numbers in several economies.
Virus Economics Asks If Young Can Be Set Free to Return to Work
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Politics this week | The world this week | The Economist
Brazil's president, Jair Bolsonaro, who has dismissed covid-19 as "sniffles", spoke outside the army's headquarters at a rally against lockdowns. Some of the protesters called for a shutdown of Congress and the Supreme Court and urged the army to take control of the pandemic response. Mr Bolsonaro has said: "Really, I am the constitution." He also sacked a health minister who supported lockdowns and replaced him with one who favours a return to business-as-usual "as quickly as possible".
What’d I Miss?: Trickle up economics – The Colorado Sun
Pantries and food programs are struggling to meet demand as major donors suspend manufacturing. But Gib's New York Bagels in Fort Collins still is sending 5,000 bagels it would normally sell in a week to food banks.
The volunteer Colorado Oil and Gas Conservation Commission was supposed to finish the state's Senate Bill 181 oil and gas regulation overhaul before a new paid panel takes over. It's not happening.
For the first time, the state has outlined plans for the electrification of medium- and heavy-duty vehicles. But the coronavirus brings caveats.
The economics of borrowing to invest make sense right now, but it’s not for everyone |
US unemployment rate approaches 20%, economists say | Salon.com
On Thursday, the Department of Labor released data showing that 4.4 million Americans filed for unemployment insurance last week. This brings the number of initial jobless claims to a total of over 26 million since the coronavirus pandemic brought the U.S. economy to a standstill five weeks ago.
For context, this means all job gains since the Great Recession have disappeared. At this rate, 2020 is predicted to exceed historically horrific full-year unemployment totals. That includes 1982, when unemployment reached 30.4 million, and 2009, when it reached 29.8 million.
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