May Economic Review: The worst month ever for the U.S. economy?
May 19, 2020
After a significant dip in economic activity over the second half of March, April saw perhaps the most rapid downturn on record. Mandatory stay-at-home orders, the (hopefully) temporary closure of “non-essential” businesses, disrupted or broken supply chains, and lack of consumer demand have driven record highs for unemployment. There is a case to be made that the combination of pent-up demand and aggressive monetary and fiscal stimulus will eventually lead to a solid and sustainable expansion, but this will likely require the virus to run its course in one form or another. Until then, the recovery process is likely to prove choppy, resembling more of a W or a U rather than a V.
See Nationwide Economics’ take on what's happening and why this month in the economy.