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The hard-to-show side of US economic data is worrying.
Sep 15,2020 08:48CST
translation
The content below was translated by Tencent automatically for reference.

SMM: although the recent US economic data look good, the impact of the epidemic on the US economy is still obvious in many ways.

From the perspective of the job market, there is a clear distinction between the performance of different industries.

The unemployment rate in u.s. banking, insurance, wall street brokers and other related financial industries was only 4.2% in august, little different from that before the outbreak.

But the unemployment rate in the tourism, hotel, catering and related service industries in the United States is as high as 21.3%. Most crucially, employees in these industries themselves earn less than those in these industries.

But the performance of US economic data does not show this divergence.

Behind the strong performance of US retail sales and consumer spending data, it is the high-income people who are less likely to be unemployed to spend.

It is these people who can work from home to avoid unemployment and higher incomes that have contributed to the recent strengthening of US home and car sales. The strong performance of US stocks has enabled this group to earn more in addition to their salaries.

Steve Blitz, chief economist of the TS Lombard, spends, with 20 per cent of the wealthiest Americans accounting for 80 per cent of discretionary spending in the US. So in this case, the performance of these US economic data makes the US economy look better than it really is.

That is why a new round of stimulus in which Congress has been unable to reach a deal is important.

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