Our Recovery Tracker fell 0.7ppts to 76.5 in the week ended July 24. Four of the tracker’s six sub-categories declined, with the health index leading the way lower. Risks remain clearly tilted to the downside as more than 60,000 new Covid-19 cases were recorded per day and the economy eagerly awaits another virus relief package.
Four months after the CARES Act was signed into law, multiple dimensions of the recovery now look constrained. With a health solution still out of reach and the rebound looking fragile, fiscal stimulus is urgently needed to prevent the economy from sliding back into a downturn. Lawmakers can mitigate unnecessary damage by striking a new stimulus before their August recess.