New economic data nourish the hope that the American economy will quickly pick up speed again. Especially retail trade and restaurants reported significantly higher revenue. However, the head of the Federal Reserve, and Jerome Powell, warns against too much Exuberance. The consumer would make her Hesitate only if the virus was gone disease.
Winand von Petersdorff-Campen
Economics correspondent in Washington.
F. A. Z.
two economic data have been recently significantly better than market observers had expected. The American economy in may, 2.5 million people, in addition to, and pushing the unemployment rate to 13.3 percent to 14.7 in April. The number prompted the economic adviser to the President, Larry Kudlow, to spread in several Interviews his Thesis of a V-shaped course of the economy. Around 80 percent of all small businesses and shops would start their work, applications for the company whilst start-UPS to the top.
Good economic news delivered at the beginning of the week, the retail sector: The Ministry of economy had announced that the sales in retail trade including Restaurants rose in the previous month, as strong as never before, with an increase of 17.7 percent compared to the previous month, however, the deepest incision there had. However, the sector is still some 6 percent behind the sales in may of the previous year. For many restaurateurs and owners of clothing stores, the situation still remains bleak. Boutiques recorded just 40 percent of last year’s sales.
The Central Bank believes in economic growth
A remarkable development has experienced the market for mortgage loans. The number of new home loan applications rising for eleven weeks resistant and has reached the highest level for years. In it’s efforts of families to replace their old loans with new cheaper, but apparently, the increase in the demand for houses is reflected to a large extent.
in addition To the good news of the establishment of the Fed-Vice-head of Richard Clarida, that the financial markets have normalized, following the dramatic Central Bank interventions and their important role in the funding of the economy played. Companies could now place high-yield bonds again. The Central Bank believes that after break-ins in the first half of the third quarter economic growth will produce.
Clarida was however no doubt as to the large uncertainty, the laste on the economy. Your course depends on the course of the pandemic and the ability of the policy to get the disease. In fact, States such as Texas or Arizona, the acting in the loosening of business restrictions, especially research-based increases in each of the Federal government, the number of Infected.
