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Coronavirus Severely Affects US Business

by Derrick Smith

According to a survey, the global economy has been affected by China ’s virus outbreak, and the US service sector business activity last month was hit by coronavirus for the first time since 2013.

New York, US (Merxwire) – Because of the outbreak of China ’s coronavirus, the global economy is threatened, not only the manufacturing industry chain of China is hit, but also the US service industry is also greatly affected. According to IHS Markit research firm reported, business activity in the United States has plummeted, including services, finance and retail.

Coronavirus hits the economy

This report caused a significant drop in the US financial market. IHS Markit / CIPS purchasing managers index data showed that services business activity fell to 49.4, from 53.4 in January. manufacturing output slowed to 50.8, compared to 51.9 in January. The data is the lowest since six.

These reports have also raised concerns about the recent bond market, as they indicate that investors believe that the risks of holding short-term and long-term government debt are increasingly similar. Investors turned to U.S. government bonds, which were considered less risky investments.

Why Coronavirus is scary

Nearly two decades have passed since the emergence of SARS in China, which has killed hundreds and caused panic, which has caused chills in the global economy. The virus that is currently spreading in China may be more destructive.

Globalization encourages companies to build supply chains that cross national borders, and to make economic linkages closer. But since the 2008 financial crisis, global debt has been rising, and the outbreak of the Coronavirus may make it more difficult to coordinate global action.

Reflections on virus outbreaks

The outbreak of the virus has made the world nervous, caused many death and sadness stories, and made people wonder whether they are too dependent on China?

Recently, some companies have reported slowdowns, but analysts said that assuming the coronavirus epidemic is relatively rapidly weakened, consumption in the United States may avoid this situation.

Although the virus outbreak affects the global economy and the shrinking of the US service industry is worrying, if jobs can be created and consumer confidence can be increased, the economy can not sink into decline after the epidemic eases.

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