The ‘Rocket Ship’ Economic Recovery Is Crashing

(Source The New York Times)

The restart of America’s economy has begun to stall as a surge in new coronavirus cases dampens consumer and business activity across states like Florida, Texas and Arizona. After weeks of a pandemic-induced contraction, the economy had begun rebounding faster than many economists expected from mid-April into June, as infection rates stabilized or fell across much of the country and the federal government injected trillions of dollars in the economy. States began to reopen, shoppers increased their spending and employers started to hire back furloughed workers. But there were signs in late May and early June that the pace of recovery was beginning to slow, even before another wave of infections swept through states that had moved quickly to ease limits on public gatherings. In recent weeks, as that wave intensified, real-time economic data began to show the economy moving backward as rising infection fears spooked consumers.