Manufacturing industry

Incoming data continued to show massive hits from the efforts to stem the spread of COVID-19, with jobless claims doubling and the New York manufacturing sector hitting all-time lows in activity.

Wednesday’s economic data were not as bad as projected, but included just the beginning of the effects of the coronavirus on the economy.

Consumer confidence dropped in March as the economy shut down to prevent the spread of the coronavirus, but economists expected a larger decline.

Initial jobless claims surged, as expected, hitting an all-time high of a seasonally adjusted 3.283 million in the week ended March 21, as the impacts of the coronavirus-driven closures showed in the numbers, the Labor Department said. The previous high for claims was 695,000 in October 1982.

New home sales were up 14.3% from a year ago, despite a 4.4% decline in February to a seasonally adjusted annual rate of 765,000, the Commerce Department reported Tuesday.

As the Federal Reserve continues trying to keep markets liquid as the stock market sinks, economic data are showing the effects of COVID-19.

The Federal Open Market Committee lowered the fed funds rate target to between zero and ¼% in an emergency meeting on Sunday, but while analysts say the move was needed, they feel it will take more to offset the effects of COVID-19.

Policymakers may not wait until their mid-month meeting and could act with other central banks.

GDP, jobless claims, pending homes sales rise while durable goods orders decline.

The Conference Board reported Tuesday that its consumer confidence index improved rose to 130.7 in February.