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Consumer Price Index (CPI)
The current indicator is 255.77 (May 2020) (United States Consumer Price Index); a monthly parameter (255.90 in April). The decline is caused by the current epidemiological situation. The quarantine regime has led to economic difficulties.
Unemployment Rate
The current data is for June 2020 11.1% (United States Unemployment Rate). The indicator is monthly (13.3 in May). The unemployment rate has increased due to difficulties for small and medium-sized businesses. Many enterprises cannot pay wages, and people are unemployed.
Payroll Employment
The current indicator is 4.8 million (June 2020); monthly data (2.7 million in May) (United States Non Farm Payrolls). The increase is caused by the governments concern about the labor market. The growth is due to the desire to increase the number of jobs.
Average Hourly Earnings
The current indicator for June 2020 is -1.20 (monthly), the previous one was -1.00 (United States Average Hourly Earnings). The weakness of the economy during the pandemic is one of the reasons for the drop. The decrease compared to last month confirms problems in the financial industry.
Producer Price Index (PPI)
The latest data is for May 2020 (-0.8); the indicator is monthly (-1.2 in April) (United States Producer Prices Change). Slight growth may be due to the stimulation of manufacturers. Financial support from the government can help strengthen this indicator.
Gross Domestic Product
The indicator of 2019 is $21,427.70 billion (yearly); in 2018, it was $20,580.22 (United States GDP). The increase in 2019 is due to a series of trade reforms and export trade agreements. Oil sales strengthened the countrys GDP parameter significantly.
GDP Price Deflator
The data is quarterly, and in the first quarter of 2020, it was 113.49 points (113.04 in the last quarter of 2019) (United States GDP Deflator). Slight growth is due to the inability to restrain prices. The earning potential of many enterprises is determined by this indicator.
Productivity Real GDP (% Change)
The data is quarterly, -5.00% for the latest quarter (2.10% for the previous quarter) (United States GDP Growth Rate). A significant drop is due to a decrease in trade during the pandemic. Restrictions on movement outside the country, closed borders.
Personal Income (% Change)
Monthly data, the current indicator for May is -4.2% (10.8% for April) (United States Personal Income). A severe drop is due to an increase in unemployment. Few opportunities for small and medium-sized businesses, limited trade.
International Trade in Goods and Services
Monthly data, the latest indicator is for May $-74,338.00 ($-70, 727.00 for April) (United States Goods Trade Balance). A significant decline in exports due to the pandemic, a reduction in imported goods. Closed borders and restrictions in most countries.
Based on the assessment of the current indicators of American economic development, one can note that, at the moment, the countrys financial industry is experiencing significant difficulties caused by the COVID-19 pandemic. Many areas are affected, including not only income levels due to restricted trade relations and GDP but also the labor market, business sector, and other fields. In particular, closed borders and numerous restrictions on entry and exit in many countries have led to the fact that the USA cannot maintain stable trade and monetary relations with partners. This affects the financial performance of the country negatively and is manifested in development indicators. In addition, internal restrictions due to the quarantine also have a significant impact on the domestic economy. A decrease in demand for goods and services of small and medium-sized businesses has led to an increase in unemployment and, consequently, a drop in demand for individual products. The failure of the government to address all the existing issues entails a reduction in household incomes and, consequently, low consumer interest. As a result, massive economic challenges have affected most of the US population.
The factor of the unpreparedness of the American economy for such a force majeure as a pandemic is confirmed by the current indicators of the financial industry development. One of the main determinants is the level of GDP over the past quarter. This negative parameter explains the inefficiency of measures taken to restrain the effects of the pandemic. The modern US economy is forced to rely on domestic reserves and assets to restore the most vulnerable sectors and return the country to the position that was before the introduction of quarantine measures. The decline in household income due to trade limits and the temporary cessation of business activities affect the countrys well-being negatively, and the suddenness of all risk factors is one of the main prerequisites for the problems. As a result, support from the government and the allocation of funds to maintain financial equilibrium are objective but insufficiently effective steps in this situation. Therefore, based on the latest data, one can argue about the weaknesses of the current US economy.
References
United States Average Hourly Earnings. Trading Economics, 2020. Web.
United States Consumer Price Index (CPI). Trading Economics, 2020. Web.
United States GDP. Trading Economics, 2020. Web.
United States GDP Deflator. Trading Economics, 2020. Web.
United States GDP Growth Rate. Trading Economics, 2020. Web.
United States Goods Trade Balance. Trading Economics, 2020. Web.
United States Non Farm Payrolls. Trading Economics, 2020. Web.
United States Personal Income. Trading Economics, 2020. Web.
United States Producer Prices Change. Trading Economics, 2020. Web.
United States Unemployment Rate. Trading Economics, 2020. Web.
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