You are here:
After the US retail trade suffered massively from the lockdown, the industry was able to recover after two strong consecutive months and achieved sales as before the crisis. The fear of a second wave remains.
The US retailers are making more sales again. They took in 7.5% more in June compared to the month before, according to the Department of Commerce in Washington. However, the increases were not as high as in May (18.2%). According to Reuters, Economists had expected growth of only 5.0% for June. Private consumption accounts for more than two-thirds of US economic output, so this is supportive for businesses and overall economic growth. 10 out of 13 major retail categories grew, reflecting stable gains in furniture, electronics, appliances, clothing, sporting goods, and restaurants and bars. The value of retail sales has therefore recovered to pre-pandemic levels with two solid consecutive gains in April and June.
Although business activity has picked up in the United States during the last weeks, economic activity is still a long way from the level before the corona crisis, according to the Federal Reserve. Between January and March, gross domestic product fell at an annualized rate of 5%. Markets expect an even bigger dive for the second quarter, due to the containment measures against the pandemic. Fears of further measures, a second lockdown or other forms of political backpedaling persist. The state of California already re-closed all inside dining and other indoor entertainment facilities this week.
According to the Labor Department, a total of 1.3 million US Americans applied for unemployment benefits in the last week. This means that the number remains at the very high level of last week. This may be interpreted as a sign of labor market recovery, but the numbers are actually flattening out at a level six times higher than before the crisis. The number was even 50'000 headcounts higher than expected by economists, according to Bloomberg. The ongoing pandemic measures and the aftermath of the lockdown have turned full employment into massively rising unemployment in the USA. The still increasing virus cases give no reason to calm down.
The United States broke its daily record for coronavirus infections on Thursday, reporting more than 77 000 new cases. The number of deaths has risen by almost 1 000 within 24 hours. More than 138 000 Americans have now died of Covid-19. Experts warn that the number of cases will continue to rise after the recent record numbers and the alarming increase in hospital admissions in many states. In the hardest hit areas in Texas and Arizona, the places for corpse storage are running out. The number of deaths per day has steadily decreased since the peak in April.
| MEZ | Country | Indicator | Last |
| 10:00 | Italy | Industrial orders (year-on-year) | -49% |
|
11:00 |
EU | Conumer prices (year-on-year) | 0.3% |
| 16:00 | USA | Uni Michigan Consumer Confidence | 78.1 |
| Country | Corporate | Period |
| Sweden | Swedbank | Q2 |
All about global economic and market trends at a glance
Subscribe to LGT's research newsletters
Follow us on Twitter, Facebook or LinkedIn, where we inform you about latest market developments and LGT News. Further informationen is available on: LGT Social Media.
Imprint
Publisher: LGT Bank (Switzerland) Ltd., Glärnischstrasse 36, CH-8027 Zurich
Editor: David Wolf, +41 44 250 83 48, E-Mail: lgt.navigator@lgt.com
Source: LGT Bank (Switzerland) Ltd.
Risk Disclosure (Disclaimer)
This publication is an advertising material / marketing communication. This publication is for your information only and is not intended as an offer, solicitation of an offer, or public advertisement to buy or sell any investment or other specific product. Its content has been prepared by our staff and is based on sources of information we consider to be reliable. However, we cannot provide any confirmation or guarantee as to its being correct, complete and up to date. The circumstances and principles to which the information contained in this publication relates may change at any time. Information that has been published should therefore not be understood as implying that no change has taken place since its publication or that it is still up to date. The information in this publication does not constitute an aid for decision-making in relation to financial, legal, tax-related or other consulting matters, nor should any investment decisions or other decisions be made on the basis of this information alone. It is recommended that advice be obtained from a qualified expert. Investors should be aware that the value of investments can fall as well as rise. Positive performance in the past is therefore no guarantee of positive performance in the future. Investments in foreign currencies are also subject to fluctuations in exchange rates. We disclaim all liability for any loss or damage of any kind, whether direct, indirect or consequential, which may be incurred through the use of this publication. This publication is not intended for persons subject to legislation that prohibits its distribution or makes its distribution contingent upon an approval. Any person coming into possession of this publication shall therefore be obliged to find out about any restrictions that may apply and to comply with them. In line with internal guidelines, persons responsible for compiling this report are free to buy hold and sell the securities referred to in this report.