(PatriotHeadline.com) – The Dow Jones Industrial Average recently suffered its worst day since the 2008 crash as a result of the global coronavirus pandemic. Despite this, however, it looks like President Trump’s economy is holding strong in the face of what is almost certainly going to prove a trying few months for the world’s economies.
Consumer confidence has definitely been shaken, but the numbers show the economy has not been hurt anywhere near as bad as people thought or expected.
Economists predicted a steep decline in the University of Michigan’s consumer sentiment index to 95, but the actual numbers for the beginning of March are 95.9. While it is still a significant drop from 101 in February, before the virus became a global pandemic, it’s not as bad as economists had thought. It showed that American consumers are positive about the present conditions despite the spread of the coronavirus.
Richard Curtin, the chief economist working on the survey, explained that the initial response to the coronavirus outbreak “has not generated the type of economic panic among consumers that was present in the runup to the Great Recession.”
“Nonetheless, the data suggested that additional declines in confidence are still likely to occur as the spread of the virus continues to accelerate.”
Curtin also said that one reason why consumer confidence has not completely plummeted is that most people see the coronavirus pandemic as temporary. However, economists do suggest that further declines are likely to happen in the near future as the coronavirus continues to spread.
The biggest loss in the University of Michigan index related to consumer confidence in the prospects for the year ahead, which fell by 29 points. This drop accounted for 83% of the entire point decline in the month of March. Curtin said, however, that consumers looked significantly more favorably on the economic outlook for the next five years.
No matter how strong the economy may be under Trump, and no matter how many measures the president puts in place to protect American businesses and workers, very little can be done about the damaging effect caused by this rapidlyspreading disease.