Today, America’s Recovery Fund Coalition (ARFC) released a new data snapshot that assesses the economic damage done by COVID-19, examining how Personal Consumption Expenditures (PCE) had been impacted thus far.
“Personal consumption accounts for almost 70 percent of our GDP each year, and to fully understand the impact of this pandemic on our economy, we created a scenario with projections with no pandemic to compare to current data and forecasts. The results are truly alarming,” said Trevor Hanger, research director for ARFC. “Through our analysis, we estimate nearly $650 billion in consumption losses from March through July. What is more alarming is that these results are an indicator that more losses are on the way.”
This analysis comes on the heels of claims that the economy is bouncing back, even though the most recent outlook from the Federal Reserve indicates that as things currently stand, unemployment will remain elevated through 2020.
More must be done for our country to truly recover from the economic devastation that COVID-19 has caused and will continue to cause.
- Based on most recent data reported, during March and April 2020, PCE contracted by 6.91 percent and 13.62 percent month over month.
- Aggregate losses in PCE for March-July are estimated at $640 billion and take into consideration one of the rosier recovery scenarios for consumer spending in 2020.
- PCE looks set for a “double dip” that will show personal consumption won’t return to February 2020 levels until April 2022.
The analyst examines consumer spending and the American economic outlook. View the complete analysis here.
About America’s Recovery Fund Coalition
America’s Recovery Fund Coalition represents 45 percent of the United States workforce. With more than 150 members across retail, restaurants, theaters, gyms, salons, real estate, the travel industry, financial services, construction, and equipment suppliers, we represent a combined 58 million American workers. We are asking Congress for support to help our businesses, workers, and communities recover. Learn more at www.AmericasRecoveryFund.org.