This morning we received a good look at the damage done by the ‘stay at home order’ for March. Retail sales fell 8.7% and removing the autos sales still fell 4.5%. Industrial production fell more than expected by 5.4%, capacity utilization fell to 72.7% from 77%. The home builders index fell to 30 from 72.
Later today the Beige Book report will be released. This is produced by the 12 Federal Reserve districts which will tell us how bad is bad. It is going to be ugly like all the other numbers.
These numbers will get worse as the damage continues from the stay at home orders across all the states. The economy can take a lot of damage but there will be a point where no matter how much money the FED and the government throw at it won’t recover quickly. Some jobs are already lost forever as employers are driven into bankruptcy. The small business can’t afford a month’s loss of income. Many restaurants will never reopen.
We need a path back to work very soon or else we sink into a new Depression like that seen in the 1930s.