5/1: MetroIntelligence Economic Update by P. DUFFY

3.8 million more workers apply for unemployment

In the week ending April 25, initial unemployment claims were 3,839,000, a decrease of 603,000 from the previous week’s revised level. Over the last six weeks, 30.3 million workers have applied for unemployment (18.6 percent of the workforce), suggesting an overall official unemployment rate of just over 22 percent when adding in the 3.5-percent rate from February.



Gallup:  30 percent of Americans report job-related financial impact from coronavirus

Nearly one in three Americans have experienced a temporary layoff, permanent job loss, reduction in hours, or reduction of income as a result of the coronavirus situation. Eighteen percent have experienced more than one of these disruptions.



Personal spending falls 7.5 percent in March as savings rate jumps to over 13 percent

In March, both personal income and disposable income decreased 2.0 percent while personal consumption expenditures (PCE) fell by 7.5 percent.  The personal savings rate jumped to 13.1 percent, up nearly 64 percent from February’s 8.0 percent.



March inflation tracker fell 0.3 percent, up 1.3 percent year-on-year

The inflation tracking PCE price index decreased 0.3 percent in March, but was up 1.3 percent year-on-year. Excluding food and energy, the PCE price index decreased 0.1 percent, but was up 1.7 percent year-on-year.



Federal Reserve announces intent to continue aggressive monetary stimulus

Federal Reserve will keep interest rates at 0-.25 percent until further notice, and also continue to support financial and mortgage markets through more bond purchases.