Four Early Indicators Of Covid-19’s Impact On The US Economy

Trump

The hospitality and film industries were beginning to suffer the first losses from the Covid-19 influence.

Covid-19 is complicated in the United States, causing President Donald Trump to declare a national emergency. The US has also banned citizens from 26 European countries from entering the United States for 30 days from the night of March 13 and could impose additional travel restrictions on Britain and some other countries.

The explosion of Covid-19 will negatively impact US labor, inflation, and GDP. It takes only one month for official data to be available, but the five frequently updated indicators below show how consumers respond to the crisis.

According to economic experts, people’s spending contributes 70% to the economy, so any stagnation can destroy development and be a threat to the economy. Some areas have begun to notice the recession.

Hotel

US hotel occupancy rates fell from 66.6% to 62% in the first week of March and lasted until mid-April. In particular, plummeted in the states of California, New York, and Washington, according to market research firm STR.

In Seattle, the first outbreak of the disease in the US, hotel occupancy rates fell to 52%, the lowest of the top 25 states. Many hotels in Southern California are available when Disneyland closed in mid-March.

Spending on people in accommodation accounts for 0.8% of GDP, the Chamber of Commerce data says. This spending could fall in half if you look at what happened after the September 11 disaster, according to Renaissance Macro Research.

The White House is considering a range of measures to rescue the tourism industry, such as hotel support as well as airlines and travel agents.

Casino

Slot machines were turned off, blackjack tables and Roulette were deserted as many of the largest casinos in the entertainment capital, Las Vegas, began to close because of Covid-19. However, during this time, Roulette and casino game enthusiasts can play at online casinos like Online Roulette in NJ.

The decision to close casinos in Las Vegas, Nevada, was a severe blow to all tourists, players, and service workers in the entertainment paradise of the United States. The statement came after the state of Nevada earlier this week recorded the first death due to Covid-19. The victim lives in Clark County, where the Las Vegas Strip is located, where more than 6 km of roads are lined with world-famous hotels and casinos.

With the US government announcing measures to strengthen the Covid-19 response, including a ban on events of 10 people or more, MGM Resorts in Las Vegas announced a temporary suspension of operations until the new announcement. The company operates about a third of the hotels and casinos on the Las Vegas Strip.

Cinema

The entire film industry, from the largest chains to the smaller theaters, recorded a decline due to fears of a spread.

AMC Entertainment, the market leader, said it would halve the number of tickets sold per show, as in New York, California, and Washington.

While many stay away from crowds on the advice of medical experts, some intriguing films still attract viewers. However, the studio’s rescheduling of some of James Bond’s “No Time to Die” or Disney’s “Mulan” is sure to make the movie theaters even more empty.

Retail

Johnson Redbook’s weekly retail sales report is the only spark when people are still shopping even though they turn to some essential items to cope with the disease.

Sales in the first week of April rose 6%, reflecting an increase in demand at discount stores, while department stores in shopping centers declined. The best-selling products are pharmaceuticals, cleaning products, household items, consumer goods, food, and drink.

 

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