Economics
U.S. Economy’s Rebound Looks Shakier After Worst Quarter Yet
- Rise in jobless claims follows virus surge, renewed closings
- ‘The outlook is very cloudy at this point,’ economist says
This article is for subscribers only.
The full scope of the pandemic’s toll on the U.S. economy was on display Thursday, when government officials reported that gross domestic product shrank the most on record in the second quarter and 17 million Americans claimed state unemployment benefits in mid-July.
While the GDP drop -- an astounding 32.9% when annualized -- was widely anticipated at this point, the jobless claims figure was not. The almost 900,000 increase in the number of people claiming continued benefits provides the latest evidence that the nascent recovery from the collapse is being undermined by the resurgence of the virus across much of the U.S.