The surge in the virus affects the service sector of the economy more than other sectors.

The risk to the recovery of the economy has increased in the last three weeks as the surge in the virus has continued. This surge has reached a point where the possibility of another full shut down or partial shutdown is rising. It is clear the virus spreads with more people inside as opposed to being outside. This has implications for returning to a work site instead of working from home. It also means the service sector such as restaurants, hotels and airlines will struggle to generate sufficient revenue to cover operating expenses of being open at reduced capacity.

 

PROBANK AUSTIN ADVISOR - NOVEMBER 16, 2020