The US received an unexpected bit of good news Friday when it was revealed that the nation’s jobless rate had declined in May as many states loosened – or eliminated altogether – the various shelter-in-place measures enacted in March when the coronavirus began widespread infections. Businesses across the nation have begun to recall furloughed employees or, in some cases (such as grocery stores, janitorial businesses, and home delivery operations), added staff to meet burgeoning demand for their services.
Surging new home sales for May also indicate the pent-up buying power of the consumer. While some of this activity reflects the fact that fewer homes were sold while potential buyers were in quarantine, this sharp increase in new homes sales indicates that many US consumers – perhaps tired of living in less spacious apartments or other such rental properties – were ready to buy their own homes. This is especially good news, as people tend to make other purchases after buying homes, such as:
- lawn mowers and other gardening equipment
- other necessities, such as paint, curtains, and rugs
For more information and discussion of opportunities, see The Freedonia Group’s extensive collection of off-the-shelf research, including an expanding catalog of COVID-19 Economic Impact reports, which highlight how various industries are responding to the current crisis with a comparison to recent recessions. Freedonia Custom Research is also available for questions requiring tailored market intelligence.