U.S. Economic News

July 8, 2020

U.S. News

The Wall Street Journal reports the coronavirus-induced recession has forced state and local governments to cut 1.5 million jobs thus far – mostly concentrated in the education sector – with more job losses expected in the months to come. While states have largely avoided raising taxes by cutting spending and dipping into reserves, this may change as uncertainty about the virus and future revenues rise. WSJ

According to the Financial Times, recovery in the retail sector is beginning to flat-line as foot traffic at U.S. malls begins to decline, especially in areas that are experiencing large increases in COVID cases. In these areas, some executives have discussed re-closing stores until the virus subsides – a troubling sign for many debt-laden retailers who are relying on improving sales to avoid bankruptcy. FT