Comment on Minneapolis Fed finds small businesses take deepest cuts

Minneapolis Fed finds small businesses take deepest cuts

By Kavita KumarStar Tribune (Minneapolis) (TNS)The pandemic has dealt a particularly large blow to smaller businesses, to women and minority-owned businesses, and to sectors such as entertainment, lodging and retail. Those are some of the findings of a May survey of nearly 1,100 businesses across Minnesota and in neighboring states conducted by the Federal Reserve Bank of Minneapolis. “The main takeaway is that COVID effects have been very wide and very deep and negative, but there’s also variation across those groups,” Ron Wirtz, regional outreach director, said during a webinar Tuesday on the impact of the pandemic on the economy. He noted that many of the traditional measures of the economy, such as gross domestic product and monthly unemployment numbers, have a lag to them of anywhere from a month to six months and have not been able to keep up with the fast-changing nature of the COVID economy. “During this time of really volatile labor markets, we’re in a spot where we are trying to feel in the dark a little bit for what’s happening,” he said. To help fill in the gaps, the Minneapolis Fed has been ramping up its surveying and outreach to businesses across the Upper Midwest to get a better pulse on the situation.Read more on NewsOK.com

 

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