Despite last week’s U.S. jobs data far exceeding expectations (added 273,000 jobs in February), the markets continued to digest the rising coronavirus (COVID-19) cases worldwide. ArrowStream economists continue to monitor and weigh in on the impact to the restaurant industry.
“As we have discussed, testing is expected to expand rather sharply in the U.S. in the upcoming weeks, which should bring more cases to light. However, more testing could help with the general market uncertainty as data is a great vaccine for ambiguity. Case in point: South Korea has been very aggressive with coronavirus testing with one of the early outcomes showing a mortality rate close to .77 percent – well below what the World Health Organization reports at 3.4 percent. So more testing may be just what the doctor ordered to bring more comfortability to the markets, consumers and those who service the consumer, especially restaurants. However, until that occurs, look for the market volatility and economic risk to remain intense.”
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