Doomsday predictions for the US economy after months of coronavirus lockdowns do not seem to be coming true.
Earlier this month, news broke that the US economy had added 2.5 million jobs despite the coronavirus crisis, and new data released this week shows that US retail sales have bounced back in the biggest monthly jump ever recorded.
The US economy experienced the steepest downturn in its history due to mandated lockdowns, but despite the unprecedented hit to the economy, consumer confidence that the economy will return to the prosperity seen in early 2020 is higher than ever.
Breitbart reported on Tuesday:
Retail sales surged 17.7 percent [in May] compared with the prior month, according to Commerce Department data released Tuesday, easily beating expectations for an 8 percent gain.
Retail sales are now down 6.1 percent compared with a year ago following the month to month 8.3 percent decline in March and April’s 14.7 percent dive.
Excluding autos and gas station purchases, retail sales were up 12.4 percent, also a record increase.
The numbers indicate a high degree of “pent-up demand.”
Despite the fact that millions of Americans lost their jobs due to the devastating impact the lockdowns had on small businesses, it seems that the $3 trillion rescue package passed in early April has successfully bridged the gap.
People aren’t just buying essentials anymore. Clothing and accessories stores reported a 188 percent jump in sales, and furniture store sales rose 89.7 percent in May.
Sales at sporting goods stores, hobby shops, musical instruments stores, and book stores also rose 88.2 percent. Sales at restaurants and bars rose 29 percent. Sales at electronics and appliances stores rose 50.5 percent.
Consumer spending accounts for about 70 percent of US GDP, so the fact that Americans are not afraid to spend their money despite economic uncertainty points to the US economy roaring back faster than ever imagined.
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