Real estate and retail shutdowns driving Tri-State slump

Daily output is down by 25% in Manhattan and 35% in Los Angeles County

TRD NATIONAL /
Apr.April 06, 2020 08:55 AM
Bvlgari at 730 5th Avenue in New York (Photo by Erin Lefevre/NurPhoto via Getty Images)

Bvlgari at 730 5th Avenue in New York (Photo by Erin Lefevre/NurPhoto via Getty Images)

The economic slowdown that is throttling the U.S. has seen economic output drop by three-quarters in some industries, including food services and arts and entertainment.

In the tri-state area of New York, New Jersey and Connecticut, the coronavirus-caused slowdown is most acute in the real estate and retail sectors, according to the Wall Street Journal, citing a report from the Economic Innovation Group.

A separate analysis from Moody’s found that at least a quarter of the U.S. economy has been taken offline amid the pandemic.

Lockdown orders have impacted eight of 10 counties that represent almost 96 percent of the national output, and daily output has dropped by 29 percent compared to the first week in March, according to the study.

In Manhattan, daily output is down by 25 percent, and in Los Angeles County, it is down by 35 percent. In Chicago’s Cook County, it is down by 30 percent.

Yearly output dropped by 26 percent during the Great Depression between 1929 and 1933, and quarterly output dropped by 4 percent between 2007 and 2009, the previous major recession.

Output has dropped by about $350 billion since the state-mandated closures began taking place. Mark Zandi, Moody’s chief economist, said the best point of comparison for what the economy is going through now would be the Sept. 11, 2001, attacks or a massive earthquake.

“It’s like if Indiana disappeared for an entire year,” he said. [WSJ] — Eddie Small


Related Articles

arrow_forward_ios
(iStock)

Real estate stocks end week mixed as virus fears rise and markets fall

Real estate stocks end week mixed as virus fears rise and markets fall
A photo illustration of SL Green's Marc Holliday (Getty; iStock; SL Green)

NYC offices get creative to lure workers back

NYC offices get creative to lure workers back
Knotel CEO Amol Sarva (iStock)

Knotel slashes its workforce again

Knotel slashes its workforce again
New foreclosure filings are rising again as limits are lifted (iStock)

Foreclosure filings ramp up, especially in minority neighborhoods

Foreclosure filings ramp up, especially in minority neighborhoods
The MTA board approved rent relief for small businesses in Grand Central and other locations (iStock)

MTA cuts rent up to 90% for small businesses

MTA cuts rent up to 90% for small businesses
New York Community Bank president Joseph Ficalora (Facebook; iStock)

NYC’s largest multifamily lender says rent collections are at pre-pandemic levels

NYC’s largest multifamily lender says rent collections are at pre-pandemic levels
Related chairman Stephen Ross (Getty; iStock; Health Pass) 

Related, Cushman & Wakefield use new app to screen workers for Covid

Related, Cushman & Wakefield use new app to screen workers for Covid
Newark puts restrictions on businesses amid spike in Covid-19 cases (Getty)

Newark restricts businesses again to curb Covid spike

Newark restricts businesses again to curb Covid spike
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...