Coronavirus Economy: Philly Fed Manufacturing Index Plunges To Lowest Point Since 1980 As Low-Wage Workers Hit Hardest
PHILADELPHIA (CBS) -- The Philadelphia Fed Manufacturing Index, which measures growth in regional businesses, dropped to minus-56.6 in April -- the lowest it's been since July 1980. The impact of job loss and lost tax revenue could last for some time to come.
"This is nobody's fault. This is a virus that came out and affected everybody across the globe," Federal Reserve Bank of Philadelphia President Patrick Harker said.
In terms of the economy, the coronavirus is hurting no one more than low-wage workers.
New research released Thursday says the local industries that have been hit hardest work in retail, restaurants and construction.
Coronavirus Latest: What You Need To Know And Staying Connected
In Thursday's unemployment report, nearly 400,000 people in the tri-state area filed claims last week. That's on top of a record number of filings in each of the past three weeks.
Since mid-March, 22 million Americans have now filed unemployment claims.
"The impact is severe," Harker said. "Absolutely severe. We saw that in today's job numbers. We're going to continue to see that for a little bit. Long-term, we will see some effects.
"Some of us will get used to working from home. What does that mean for office space? We'll see. Travel, tourism, other things will have some impact."
Since the coronavirus outbreak began to take hold, the fed cut interest rates, loosened lending restrictions and offered more loans for small businesses.
Harker says more will need to be done at the federal level and in Congress.
"Let's look at what's working. If we need to tweak it, we tweak it," he said, "but let's keep going and let's keep helping people that need the help."
To see the full Federal Reserve report, click here.
