Economy.com Daily Update: July 7, 2020

Today's Economy

During the month, 6.5 million workers were hired as businesses began to recall workers.

Reduced capacity will prevent the region’s economies from joining the party.

Low interest rates and rapidly widening fiscal deficits will boost inflation once the economy begins to recover.

The European Commission revised down its summer forecasts, but the third quarter should be better.

Commentary

It is urgent that lawmakers follow through in the coming days on the next fiscal rescue package.

There is widespread support by the American people for another economic package that helps businesses and workers.

Much of the June data came in before many states started seeing a rapid increase in COVID-19 cases.

We look for a slight increase in the number of people filing for unemployment insurance benefits.

Today's Economic Indicators

United States
CoreLogic Home Price Index
May. 2020: 0.7%
The CoreLogic Home Price Index rose 0.7% in May from the previous month and advanced 4.8% year over year.

United States
FOMC Monetary Policy
Jul. 2020:

Italy
Retail Sales
May. 2020: 24.3%
Italy’s retail sales rebounded sharply in May, by 24.3% m/m, partially offsetting record drops in March and April.

Germany
Industrial Production
May. 2020: 7.8%
Headline calendar and seasonally adjusted industrial production rose by 7.8% m/m in May after plunging by 17.5% the month before.

Australia
Monetary Policy
Jul. 2020: 0.25%
The Reserve Bank of Australia kept its monetary settings unchanged in its July meeting, as the cash rate and the three-year bond yield target were kept steady at 0.25%.

Chile
Foreign Trade
Jun. 2020: US$1,391.1 mil
Chile’s foreign trade surplus remained stable in June, coming in at $1.39 billion, in line with the Moody’s Analytics forecast and once again on the back of falling imports as the COVID-19 outbreak spread through the country, lowering demand for imported goods.

United States
Moody's Analytics Used Vehicle Price Indexes
Jun. 2020: 6.3%
Wholesale U.S. used-vehicle prices rallied last month.

Peru
Consumer Price Index
Jun. 2020: 1.6%
The Lima CPI fell 0.27% from May to June, the largest decline for the month of June since the 2008-2009 global financial crisis.

Canada
Purchasing Managers' Index
Jun. 2020: 58.2
The seasonally adjusted Ivey Purchasing Managers' Index increased from 39.1 in May to 58.2 in June.

United States
Job Openings and Labor Turnover Survey
May. 2020: 3.9% openings rate
The May JOLTS report, which straddles the May and June payroll reports, reflects the partial recovery in the labor market.

Singapore
GDP - Advanced
2020Q2:

Argentina
Industrial Production - Advance
May. 2020: -26.4%
Industrial output sunk 26.4% y/y in May (NSA) as the country remained in partial lockdown amid the COVID-19 pandemic.