Economy

JPMC Data: Economy Looks To Be Stalled

Consumer spending data from J.P. Morgan Chase shows the economy at a standstill, according to a report by CNBC.

The data shows weekly jobless claims and hours worked by employees haven't been improving or necessarily declining either. The numbers showed a 10 percent decline in spending compared to a year ago, albeit higher numbers as compared to the height of the pandemic's economic destruction in March and April during the nationwide shutdowns, CNBC reported.

The numbers include a rise in spending at supermarkets and wholesale retailers, while other places like restaurants, gas stations and hotels had sharp declines, according to CNBC. Age was also a factor, with millennial and Generation Z consumer spending down 4 percent and baby boomer spending down as much as 18 percent.

The slowdown coincides with the resurgence in coronavirus cases that has been occurring since mid-June in multiple parts of the U.S., which has seen spikes in numerous populated states like Texas and Florida.

And, the number of jobs added has slowed, with just 1.48 million jobs expected to be added for July, down from the 4.8 million jobs added in June, CNBC reported.

Also, in a blog post, the St. Louis Federal Reserve said the employment situation could have worsened since mid-July when the non-farm payrolls survey was conducted. The Fed cited data from scheduling firm Homebase.

The news of a stalled economy comes in conjunction with the worsening opinions of numerous Americans about the status of their furloughed jobs. PYMNTS reported that around half of those who lost their jobs have now also lost confidence that those jobs will come back. The number is a sharp increase in discouragement from earlier in the pandemic; in April, just two out of every 10 people surveyed said they didn't think their jobs would return.

In addition, unemployment filings have been spiking in recent weeks. Both of the last two weeks saw over 1 million new U.S. claims after several weeks of declining numbers.

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