ECON 41% Of Business Closures On Yelp Have Permanently Closed As V-Shaped Recovery Implodes

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President Trump's economic COVID-19 response, through massive fiscal and monetary stimuli, was expected to generate a V-shaped recovery ahead of the elections. We noted, all along, there was never a snowball's chance in hell that economic growth would revert to 2019 levels later this year; nevertheless, the labor market would fully recover.

If readers recall, President Trump has given several press conferences where he declared that the economy is quickly recovering: "We've been talking about the V," the president said. "This is better than a V. This is a rocket ship."
A new report via Yelp, tilted "Local Economic Impact Report," debunks the V-shaped narrative and tells a much different story of slow reopenings and widespread permanent closures, all suggesting the economic devastation continues to crush the economy with no recovery in sight.

Yelp data shows large swathes of Americans remain in deep recession through mid-June. Since April 19, only 20% of the 175,000 Yelp-registered stores that were closed during lockdowns have reopened.
"As of June 15, there were nearly 140,000 total business closures on Yelp since March 1. In April, we reported more than 175,000 business closures, indicating that more than 20% of businesses closed in April have reopened.
"Las Vegas, NV, endured the highest number of closures relative to the number of businesses in the city (1,921 total closures), while Los Angeles, CA, had the largest total number of closures (11,774 total closures)."

h/t Yelp
Yelp makes a shocking claim: "Of all business closures on Yelp since March 1, 41% are permanent closures."
"Our data shows the largest spikes of permanent closures occurred in March, followed by May and June, indicating that the businesses that were already struggling had to permanently close right away and the businesses that were trying to hold on, but unable to weather the COVID-19 storm, were forced to shutter in recent months."
Of the businesses that shuttered operations, restaurants and shopping/retail have led with the most permanent closures.
"Among those with the highest rate of business closures are shopping and retail (27,663 closed businesses), restaurants (23,981 closed businesses), beauty (15,348 closed businesses) and fitness (5,589 closed businesses).
"Retail was by far the hardest hit, experiencing the highest number of total closures, with the average daily rate continuing to increase since March. Of all closures on Yelp since March 1, 20% are for retail businesses and 35% of closed retail businesses are indicated as permanent on Yelp.
"In March, Restaurants had the highest number of business closures, compared to other industries, and have continued to close at high rates. Of the businesses that closed, 17% are restaurants, and 53% of those restaurant closures are indicated as permanent on Yelp. Restaurants run on thin margins and can sometimes take months or even years to break even, resulting in this higher rate of permanent closures."

h/t Yelp
What this all means is the recovery is losing steam. Consumer spending is set to plunge again this summer as the Paycheck Protection Program and other stimulus has run its course. With no recovery - more business closures/ likely more permanent closures and increased job losses are ahead.
 

Troke

TB Fanatic

President Trump's economic COVID-19 response, through massive fiscal and monetary stimuli, was expected to generate a V-shaped recovery ahead of the elections. We noted, all along, there was never a snowball's chance in hell that economic growth would revert to 2019 levels later this year; nevertheless, the labor market would fully recover.

If readers recall, President Trump has given several press conferences where he declared that the economy is quickly recovering: "We've been talking about the V," the president said. "This is better than a V. This is a rocket ship."
A new report via Yelp, tilted "Local Economic Impact Report," debunks the V-shaped narrative and tells a much different story of slow reopenings and widespread permanent closures, all suggesting the economic devastation continues to crush the economy with no recovery in sight.

Yelp data shows large swathes of Americans remain in deep recession through mid-June. Since April 19, only 20% of the 175,000 Yelp-registered stores that were closed during lockdowns have reopened.

Yelp makes a shocking claim: "Of all business closures on Yelp since March 1, 41% are permanent closures."

Of the businesses that shuttered operations, restaurants and shopping/retail have led with the most permanent closures.


What this all means is the recovery is losing steam. Consumer spending is set to plunge again this summer as the Paycheck Protection Program and other stimulus has run its course. With no recovery - more business closures/ likely more permanent closures and increased job losses are ahead.
I think I reported that the WSJ had an article stating that the savings rate had gone way up. Which means even less money circulating around enhancing the economy. We are doomed.
 

Nowski

Veteran Member
I think I reported that the WSJ had an article stating that the savings rate had gone way up. Which means even less money circulating around enhancing the economy. We are doomed.
In order to retake The White House, and to increase their overall control of the ZUSA,
the damocraps released COVID-19, to crash the ZUSA economy, to usher in The Greater Depression.

They have succeeded.

Nothing but hell is coming in November 2020, payback for November 2016.

We are doomed.

Please be safe everyone. Pray for the return of Christ.

Regards to all.

Nowski
 
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