COVID Update 62

NY on PAUSE Extended to May 28 for Regions Not Allowed to Reopen Yesterday.

Five regions have met the public health metrics required to reopen; North Country, Central New York, Mohawk Valley, Finger Lakes, and Southern Tier. If any of the regions that have not met the metrics are able to meet all seven, they will immediately be eligible for reopening.

We therefore encourage all manufacturers in the Mid-Hudson Region – whether currently operating as essential or not – to read, understand and put into practice the reopening guidelines which can be linked to from here.

Read the Governor’s press release 

NYS Budget Director Robert Mujica Confirms the NYS Comptroller’s Report

The Report finds that the State is down 14% in revenues and will have a $61 billion budget gap over the next four years. Mujica and Governor Cuomo were noncommittal about when the State will issue budget cuts, but explained the first round could occur this month. The Governor said that he will not immediately implement the 20% cuts he has warned of in the past.

The State’s school districts must adopt budgets by Thursday, but they don’t what kind of funding levels they can ultimately count on.  The Governor has been advocating for Federal funding for state and local governments to fill the budget gap, but it has not yet materialized.

Read more at the Legislative Gazzette

Get the Empire Center’s Take from E.J McMahon here

Empire State Manufacturing Survey: May 2020

Business activity continued to deteriorate significantly in New York State, according to firms responding to the May 2020 Empire State Manufacturing Survey. The headline general business conditions index climbed thirty points, but remained well below zero at -48.5. New orders and shipments continued to decline sharply, though not as steeply as in April. Delivery times were slightly shorter, and inventories were slightly lower. After plunging last month, employment levels and the average workweek fell further in May. Input prices were slightly higher, and selling prices continued to decline modestly. While current conditions remained extremely weak, firms grew more optimistic that conditions would be better six months from now.

Read More at the NY Fed

Coronavirus Lockdowns Trigger Rapid Drop in Retail Sales, Factory Output

U.S. lockdowns to contain the coronavirus pandemic prompted record monthly drops in retail spending and industrial output, as consumers pulled back sharply on shopping and eating out and factories suffered a sharp drop in demand.

Read more in the WSJ

Empire State Development Announces More Than 4$M awarded to support Companies Producing vital COVID-19 Supplies

From New Technology Improving N95 Masks, to Ventilators and Vital COVID-19 Testing Supplies, these Products will be Produced in New York State

Empire State Development (ESD) today announced support for eight New York State businesses to produce needed testing supplies and Personal Protective Equipment (PPE) related to the COVID-19 pandemic. More than $4 million has been awarded to help these innovative companies retool their business lines and pivot to manufacturing vital supplies for ongoing response and recovery efforts.

ESD Acting Commissioner and President & CEO-designate Eric Gertler said, “Many of the world’s premier and most innovative companies are in New York State. ESD’s support for these businesses not only answers Governor Cuomo’s call for homegrown industries to assist with the state’s efforts to combat the coronavirus but reflects the investment is being made to ensure that the State continues its record of smart growth as we recover and grow statewide.” 

The first eight awards can be found here 

Coronavirus Seemingly Tamed, Chinese Economy Starts to Recover

But weak sales at stores and a stall in export orders raise fears of a possible second downturn this summer.

BEIJING — China has turned its factories back on after bringing the coronavirus outbreak largely under control within its borders. The question now is who will buy the goods those factories make.

Industrial production surged last month in China more than twice as fast as most economists expected, according to official data released on Friday by the country’s National Bureau of Statistics. But retail sales fell even more sharply than anticipated, while orders for future exports from China have stalled.

The world is watching China’s economic performance closely. It is a couple of months ahead of the rest of the world in coping with the virus and then trying to reopen businesses. Its successes or stumbles could offer lessons to others.

Read more at The New York Times (subscription)

Deeper Dive From The Economist: Has COVID-19 Killed Globalisation?

The flow of people, trade and capital will be slowed

“The underlying anarchy of global governance is being exposed. France and Britain have squabbled over quarantine rules, China is threatening Australia with punitive tariffs for demanding an investigation into the virus’s origins and the White House remains on the warpath about trade. Despite some instances of co-operation during the pandemic, such as the Federal Reserve’s loans to other central banks, America has been reluctant to act as the world’s leader. Chaos and division at home have damaged its prestige. China’s secrecy and bullying have confirmed that it is unwilling—and unfit—to pick up the mantle. Around the world, public opinion is shifting away from globalisation. People have been disturbed to find that their health depends on a brawl to import protective equipment and on the migrant workers who work in care homes and harvest crops.”

Read more at the Economist