This week on “Inside the Economy”, we refocus on the biggest driver of the economy, consumer spending. Retail sales were up in May, auto sales are climbing back and sales of new homes returned to a level of normalcy. An upward trend in consumer spending is a sign of economic relief, however states and local governments may still have challenges ahead. How has COVID-19 affected state revenues and what is the implication for municipal bonds? Tune in to find out!
- Consumer Spending is on an upward trajectory and May data showed a big uptick in retail, auto and new home sales.
- Forbearances have mostly paused, and the housing market is returning to normal even though most states still are not allowing physical showings.
- State and Local governments have seen a big drop in revenue. This may point to more aid from the federal government.