America’s economy is taking another hit as coronavirus cases surge and businesses shut down again by theothersarahh
on Tuesday alone—and the new restrictions that are accompanying the resurgence of the virus have the potential to derail an economic rebound until the fall, analysts from Goldman Sachs say. ... [+]Tighter restrictions—like the closure of bars and gyms—and voluntary social distancing measures are already having a “noticeable impact on economic activity,” analysts from Goldman Sachs said this week.
States with the worst coronavirus outbreaks, like Texas, Arizona, and California, saw declines in activity in June that the bank projects will continue this month. Notable exceptions are manufacturing and construction, two industries that are less dependent on consumer spending. The new virus situation prompted analysts to revise down their GDP forecast for the third quarter by eight percentage points, from 33% to 25% from the same quarter last year.
All told, however, Goldman’s analysts expect the U.S. economy to “get back on track” in September based on how other major economies have performed while containing the virus and on the fact that U.S. authorities have showed willingness to adapt to the changing conditions .Many officials have said a complete shutdown of state economies for the second time will be a last resort. “Closing down Texas again will always be the last option," Gov.
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