By Yasin Ebrahim
Investing.com – U.S. Economic growth in recent weeks has contracted sharply and abruptly and more job cuts were expected in the coming weeks, a Federal Reserve survey showed.
As expected, the central bank’s economic report, based on anecdotal information collected by the Fed’s 12 reserve banks through April 6, flagged the coronavirus-led hit to the economy and signaled more pain ahead, particularly in the labor market.
“Economic activity contracted sharply and abruptly across all regions in the United States as a result of the COVID-19 pandemic,” the report showed, with leisure and hospitality and retail among the hardest-hit industries due to social distancing measures and mandated closures.
“Employment declined in all Districts, steeply in many cases, as the COVID-19 pandemic affected firms in many sectors,” according to the report. “Employment cuts were most severe in the retail and leisure and hospitality sectors, where most Districts reported widespread mandatory closures and steep falloffs in demand.”
Underscoring the potential of a further downturn in the labor market, the report noted the near-term outlook was for more job cuts in coming months.
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