IMF predicts major rebound in 2021
According to the International Monetary Fund (IMF), COVID-19 will create the worst worldwide economic depression since the Great Depression. Gita Gopinath, Director of the IMF’s Research Department, wrote in April that the virus is “unlike anything experienced in our lifetimes.” However, the IMF doesn’t think the recessionary conditions will last long, stating that if the virus subsides in the second half of this year, global growth will rebound to 5.8 percent in 2021.

U.S. economy officially entered recession in February
A group of economists declared in June that the U.S. economy entered recession territory in February. The recession ended the longest economic expansion in U.S. history — nearly 11 years. A committee within the National Bureau of Economic Research, a private nonprofit group, determines when recessions begin and end. The committee cited spending peaked in February, and then fell sharply in March as the coronavirus shut down businesses nationwide.

Dallas Fed: Unemployment will remain high through 2020
Dallas Fed President Robert Kaplan said on CBS’s “Face the Nation” that the jobless rate will settle around 8 percent by the end of the year. Kaplan said jobs will be created at a slow rate for the rest of this year.

U.S. service sector craters into contraction for the first time in more than a decade
The Institute for Supply Management announced in May that the U.S. service sector fell into contraction for the first time since December 2009. The report said that the service sector index fell to 41.8 percent in April. Any reading below 50 shows a contraction. The service sector index, which takes into account restaurants and retail that were closed in April, had a 112-month record of positive readings.

Unemployment rates set record high in 43 states
Unemployment rates set record highs in 43 states in April, according to the Bureau of Labor Statistics. The data captured by the Bureau in April was likely flawed, meaning the unemployment rate for the nation was actually much higher than the 14.7 percent that was published. For one, the Census Bureau did not conduct in-person interviews as a result of the virus. Also, the Census closed two call centers because of the pandemic. Furthermore, the Bureau did not count several million of the 11.5 million people listed as employed, but who were not working. Those people, according to the Bureau, should have been designated as “unemployed on temporary layoff.” A prime example of the error occurred in Connecticut; the Bureau said that state’s unemployment was 7.9 percent in April, the lowest in the country. Connecticut officials reported that the figure was “inaccurate” and that its unemployment was actually around 17.5 percent.

Congressional Budget Office says coronavirus to affect U.S. economy for years
The Congressional Budget Office said in the spring quarter that the pandemic would inflict a long-term blow to the U.S. economy. The office projected that the coronavirus will cost the U.S. economy $7.9 trillion over the next decade.

What will the virus do to office space vacancies?
The coronavirus forced tens of millions of workers to shelter in place and work from home. This has had a tremendous impact on commercial real estate, as offices throughout the country suddenly emptied. In a study in the spring quarter, Houston-based NAI Partners found that many workers can be productive working from home. The study, which polled employers, found that 57 percent of respondents said they may execute longer-term work-from-home policies once the virus ebbs.

Coronavirus job losses wipe out a decade of job gains
In the last two weeks of March, and through April and May, about 40 million Americans filed for unemployment. The job losses are more than the job gains over the last 10 years. At no time in U.S. history since the Great Depression has the nation seen this many jobs lost. There were, however, job gains of 2.5 million in May as some companies opened and brought back workers they had laid off.

Virus devastates U.S. economy and here is one factor
According to the National Bureau of Economic Research, two thirds of workers — such as those in retail, lodging and restaurant services — cannot work from home. In fact, the research showed that only 37 out of every 100 jobs can be performed remotely.

Fed official predicts shutdowns for 18 months
Federal Reserve Bank of Minneapolis President Neel Kashkari said in the spring quarter that the U.S. economy could see “rolling shutdowns” as the coronavirus outbreak flares and subsides based on opening the economy. Kashkari said on CBS’s “Face the Nation” that flare-ups of the virus will continue until there is a vaccine. He used the example of other countries that have opened their economies followed by a second wave of the virus.

Birthrates in the U.S. fall to another record low
The U.S. saw record-low birthrates in 2019. Around 3.7 million babies were born in the U.S. last year, down 1 percent from 2018, which was previously the low mark. The fertility rate fell 2 percent to only 58 births per 1,000 women aged 15 to 44. That is the lowest level since data tracking and recording began in 1909. Economists say that Millennials have been slower to start families than previous generations because they believe they cannot afford children.

U.S. sees largest monthly decreases on record for imports and exports
Both U.S. exports and imports logged their largest monthly decreases on record in April as the coronavirus pandemic raged. Imports fell 13.7 percent in April from March, and exports were down 20.5 percent in April according to the Commerce Department. The declines are the largest since record keeping first started in 1992.

U.S. manufacturing output fell by the most in 100 years
In April, as manufacturers were closed because of the coronavirus, manufacturing in the U.S. saw a 13.7 percent drop in output. It was the steepest decline in the 100-year history of the industrial production index. Manufacturing, according to the Institute for Supply Management, fell to a 41.5 percent index in April, but came back up to 43.1 in May. Anything below 50 signals that U.S. manufacturers are in retreat.

U.S. might get to 90 percent renewable energy in 15 years
Experts on climate have maintained in the last few years that it wouldn’t be possible to run the electric grid on 100 percent renewable energy until 2050. However, those same experts have now stated that because the cost of renewable energy from solar, wind and battery storage has fallen so quickly, the nation could be run on 90 percent carbon-free energy by 2035.

Large cities in the South growing faster than cities in other U.S. regions
The South leads all other U.S. regions in population growth, according to recent Census Bureau data. Ten of the top 15 fastest growing cities in the U.S. include Atlanta, Charlotte, Houston, San Antonio, Dallas, Austin and others. In fact, last year, according to Census data, Charlotte passed San Francisco to become the nation’s 15th-largest city. Populations in large Southern cities grew by an average of 11.8 percent between 2010 and 2019. Large cities in the West grew by 9.1 percent during those nine years, followed by the Northeast (3.1 percent) and the Midwest (1.5 percent).

Airbus and Boeing, two major employers in the South, are struggling
Airbus, with its full assembly plant in Mobile, Ala., and Boeing, with its full assembly plant in North Charleston, S.C., are major employers in the South. Amid the coronavirus and a collapse in air travel, they are laying off workers. Airbus is laying off over 12,000 employees in Europe, but its Alabama plant has only seen a handful of workers that have been dismissed as of June. Boeing has cut nearly 7,000 workers and over 5,000 have taken voluntary separations. Jetliner orders for both companies have been cut sharply. Airbus has sold 299 planes as of the end of June compared to 768 in 2019. Boeing has sold a negative 264 planes (58 sold and 322 cancellations).

Will the coronavirus threaten shale boom?
The shale and oil industries in the South are massive employers. The pandemic has slowed the demand for crude and natural gas dramatically. As a result, drillers have shut down wells en masse throughout the South. Last year, the U.S. was the world’s top oil producer, producing 13 million barrels a day. It might be years before the U.S. again produces 13 million barrels a day, if ever, oil and natural gas executives said in April and May. According to research by Rystad Energy, oil and gas companies are expected to lose $1 trillion in revenues this year.

In a landmark period in this nation’s history, renewable power is poised to top coal-generated power this year
The U.S. is nearing the point where renewable energy will surpass that of coal generation for the first time in over 120 years. Ten years ago, coal-generated electricity provided nearly 50 percent of the nation’s power to homes and businesses.

Semiconductor industry in the U.S. wants federal money to reshore chip manufacturing
The U.S. semiconductor industry is lobbying the federal government to secure as much as $37 billion for new chip plants, according to the Semiconductor Industry Association. The association wants to reduce dependence on Asia, particularly China, for chips used in all kinds of devices, including phones and computers.

Texas Instruments moves ahead with $850 million Texas chip plant
Texas Instruments is moving ahead with its new semiconductor manufacturing plant in Richardson, Texas, in the midst of the epidemic. The plant represents an investment of $850 million.

Texas manufacturing showed improvement in May
The manufacturing sector in Texas is still in decline because of the pandemic, however, it showed improvement in May. Manufacturing activity in Texas rebounded 28 points, from -56 percent in April, when the bottom fell out, to -28 percent in May. The negative reading was the third month in a row that the sector declined. But the slower contraction in May shows that manufacturing is improving in the South’s largest economy and state.

Former fed bank president to chair Dallas economic recovery
Former Federal Reserve Bank of Dallas president Richard Fisher will chair Dallas’ newly formed economic recovery task force. Fisher led the Dallas Federal Reserve for 10 years. Until the COVID-19 outbreak started, Dallas led the nation in several key factors, including job creation.

Texas’ economy gets slammed
Texas, which has one of the largest state economies in the country, is being challenged economically like never before. Home to American and Southwest Airlines, the airline industry has seen tens of thousands of layoffs and as much as a 90 percent drop in revenue. Texas’ ports are struggling and its oil industry, one of the largest in the world, has collapsed.

Port of Corpus Christi sees record profits in the first quarter
While oil and gas has slowed dramatically in the spring, the Port of Corpus Christi saw record profits in the first quarter of 2020. The port, the largest oil export facility in the U.S., saw a profit of over $32 million in the first quarter, while it also saw record amounts of crude exports.

Again, Texas was the No. 1 destination for corporate moves in 2019
According to Allied Van Lines and its Magnet States Report that came out in the spring, Texas was the top destination for people and companies moving from other parts of the country last year. Houston was the top destination for corporate moves and Austin was the No. 1 location for consumer moves. California, Florida and North Carolina also made the top five.

Nonresidential building starts collapse in Dallas-Fort Worth
Commercial real estate in Dallas-Fort Worth fell more than 40 percent in April 2020 compared to April 2019, according to Dodge Data. Nationwide, commercial real estate fell by 24 percent in April.

Austin remains fastest growing U.S. city
Austin’s metro population jumped to 2.3 million in 2019. That was an increase of 2.8 percent from the prior year. The growth rate makes Austin the fastest growing city in the U.S. for the ninth consecutive year.

Dallas-Fort Worth wipes out two years of job gains
During the 12 months ending with April, Dallas-Fort Worth lost more than 280,000 jobs as the coronavirus pandemic spread. That figure wiped out job gains of the previous two years in which Dallas-Fort Worth was, at times, the largest job-generating market in the country. Some lost jobs were regained in May. However, Dallas-Fort Worth didn’t even come close to New York’s loss of 2 million jobs in the same time period.

Dallas airport to revisit $3 billion expansion
The DFW International Airport was scheduled to construct a new $3 billion terminal this year, but the coronavirus has airport officials reevaluating the project. Some airlines have seen traffic drop as much as 90 percent in the first month of the virus. The new terminal would have served American Airlines.

North Texas home sales fall 25 percent in May
The Dallas-Fort Worth region saw home sales fall by 25 percent in May, the largest decline in nine years. Condo and townhouse sales fell by almost 40 percent. The figures were tallied by the Real Estate Center at Texas A&M University and the North Texas Real Estate Information Systems.

Atlanta airport named busiest in the world, again
Hartsfield-Jackson International was again named the world’s busiest airport in 2019 by Airports Council International, prior to travel collapsing. No. 2 was Beijing Capital International Airport with 100 million passengers. At one point in the spring quarter, flights from Hartsfield-Jackson fell by 95 percent, forcing the airport to close several terminals.

Atlanta airport sees drop of 95 percent in passengers in April
As the coronavirus essentially shut down airliner traffic, Atlanta’s Hartsfield-Jackson Airport saw a 95 percent decrease in traffic in April. Passenger traffic has improved since then, but airport officials project a slow 5 percent increase in passenger counts monthly. They said it could take two to five years for a full recovery.

Multi-billion-dollar energy projects in Louisiana to slow
According to the LSU Center for Energy Studies, the amazing 10-year run of energy and petrochemical projects in Louisiana will slow until at least 2025. In recent years, multi-billion-dollar energy projects, such as Cheniere’s LNG export facility in Southwest Louisiana, will slow until there is greater demand for crude oil and natural gas, or until there is a cure or treatment for the coronavirus.

Kentucky governor cited by U.S. News and World Report
Kentucky Gov. Andy Beshear was named by U.S. News and World Report as the top governor in the country in governing through the coronavirus pandemic. Beshear earned a score of 4.44 percent out of 5 percent. In the publication’s poll, 86 percent said Beshear was doing a good or excellent job at governing during the crisis.

Air Force makes it official; Montgomery will be home to F-35s
The Secretary of the Air Force officially selected the 187th Fighter Wing at Dannelly Field in Montgomery as the Air National Guard’s sixth location for the F-35s. The decision to make Montgomery a home for an F-35 fighter wing will mean thousands of new jobs for Central Alabama.

First A220 Airbus made in Mobile, Ala., takes maiden flight
In June, the first A220 produced at the Airbus plant in Mobile made its first test flight over the Gulf of Mexico. Airbus acquired a majority ownership in the A220 aircraft from Bombardier in 2018 and built a second assembly line at its facilities in Mobile. Airbus also makes the A320 line of jetliners on a different assembly line there.

New CEO named for Alabama State Port Authority
John Driscoll, the maritime director at the Port of Oakland, has been named the new CEO of the Alabama State Port Authority. Driscoll replaces Jimmy Lyons, who has been the CEO for the port for more than two decades.

Nashville sees largest drop in spending in U.S.
Since the onset of the coronavirus, consumer spending in Nashville has dropped more so than any major U.S. metropolitan area. The data was published in the spring by researchers at Brown and Harvard Universities. Spending fell 46.3 percent in the Nashville metro from January to April 30th. That is more than double the decline of the U.S. average of consumer spending.

Florida’s Grayton Beach named No. 1 in the U.S.
Grayton Beach, located on the Panhandle east of Destin, has been named the No. 1 beach in the U.S. The sand is so white that in bright sunlight it is blinding. The designation was done by Stephen “Dr. Beach” Leatherman, a professor at Florida International University.