US economy set to see partial bounceback after second quarter plunge - Business Insider

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After a record plunge from April to June, the US economy is set to bounce back, but not all the way

, the Commerce Department said on Thursday, citing preliminary data.

US gross domestic product fell at a record 33% annualized rate in the second quarter, meaning the economy was about 10% smaller after those three months than at the start of the year. Morgan Stanley researchers predict that one record will be immediately followed by another, saying in a research note that third-quarter GDP is poised to show the largest sequential increase on record.The second quarter's drastic drop-off can be attributed to months of pandemic-related shutdowns. March and April saw mass layoffs and completely decimated economic activity. But as lockdowns lifted in May and June — even as coronavirus cases continue to surge — economic activity spiked again.

A note from Bank of America said July should continue to see jobs growth, predicting about 1 million jobs will be added on net after June's record 4.8 million increase. Real-time data sources from the Bureau of Labor Statistics and Google mobility trends indicate slowing momentum due to the emergence of new virus hotspots, the bank said.Bureau of Labor Statistics, Google, BofA Global Research

Bank of America also cautioned there was a "large error band around this forecast" and said it sees the unemployment rate heading from about 11.1% as of end-June to to 10.7%.Do you have a personal experience with the coronavirus you'd like to share? Or a tip on how your town or community is handling the pandemic? Please emailfrom Business Insider Intelligence on how COVID-19 is affecting industries.

 

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You are crazy to even say that. With the cases rising in this manner I challenge u on this view. N u are crappy to even suggest this to lie to people of a good economy at all

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