US economy nosedives

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US economy nosedives

Between January and March, US GDP suffered its fastest drop since 2008. Output shrank by 4.8% in the first quarter: more than most economists had expected. The US economy relies heavily on people spending money, but in March they put their wallets away as lockdown started and people lost their jobs.

Keep calm and queue on

Sainsbury’s boss Mike Coupe warned that customers are likely to be queueing until September as part of social distancing measures. The supermarket’s full-year results were released today, showing its sales growth peaked at 48% in mid March when stockpiling mania was at its height.

Fancy a staycation?

Experts are predicting a staycation boom (paywall) once lockdown measures are eased. With Brits counting the pennies and wary of the risks of travelling abroad, holiday lets and campsites in the UK could have a field day. An influx of cooped up holidaymakers keen to stretch their legs would give a vital boost to rural areas and seaside towns.

Shell shock

The oil company has cut its dividend to shareholders for the first time since the second world war. The global collapse in oil prices has caused Shell’s profits to take a 46% hit in the first quarter. Reducing dividend payouts is a rare move to help shore up the company’s financial resilience for the choppy waters ahead.