April 17, 2020

The Industrial Production Index declined 5.4% in March, as the COVID-19 pandemic led many factories to suspend operations late in the month. The decreases for total industrial production and for manufacturing were their largest since January 1946 and February 1946, respectively. At 103.7 percent of its 2012 average, the level of total industrial production in March was 5.5 percent lower than a year earlier. There is no question that the concerns about the Corona Virus and the government response, with social distancing related polices explain the abrupt decline in economic activity. Now that we appear to have flattened the curve and the economy begins to reopen, what kind of recovery will the US experience?

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