Real estate and retail shutdowns drive economic slump

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

TRD NATIONAL /
Apr.April 06, 2020 11:30 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
Howard Lorber, and Jay Parker, with 801 Brickell Avenue

Douglas Elliman is closing three South Florida offices

Douglas Elliman is closing three South Florida offices
Map of priciest condo sales and 19333 Collins Ave (Credit: Google Maps)

Miami condo sales volume in free fall last week of May

Miami condo sales volume in free fall last week of May
Gov. Ron DeSantis (Credit: Joe Raedle/Getty Images)

Florida extends freeze on evictions and foreclosures to July

Florida extends freeze on evictions and foreclosures to July
Ronny Finvarb, Sheldon Suga, and Phil Goldfarb

Get your electrostatic disinfectant sprayers ready: Hotels begin reopening in South Florida

Get your electrostatic disinfectant sprayers ready: Hotels begin reopening in South Florida
Arden Karson

Arden Karson launches real estate firm during Covid

Arden Karson launches real estate firm during Covid
Conrad Miami with Camilo Miguel of Mast Capital

Conrad Miami lays off 154 employees ahead of county reopening

Conrad Miami lays off 154 employees ahead of county reopening
Inside South Florida’s mall, retail and restaurant reopenings

Inside South Florida’s mall, retail and restaurant reopenings

Inside South Florida’s mall, retail and restaurant reopenings
Map of priciest condo sales and Icon South Beach (Credit: Google Maps and Gzzz via Wikipedia)

Miami condo sales volume nosedives in mid-May

Miami condo sales volume nosedives in mid-May
arrow_forward_ios

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

Loading...