U.S. economy sets dubious record

The U.S. economy has set a record, and not in a good way.

It was announced last week the nation's gross domestic product, or GDP, contracted at an annualized rate of 32.9% during the second quarter (April-June) of 2020, when thousands of businesses temporarily closed due to the COVID-19 pandemic.

GDP is a measurement of the market value of all goods and services produced in a specific time period. To put the second-quarter GDP shrinkage into perspective, it was more than three times steeper than the previous record of 10% in the first quarter of 1958 and marked the steepest contraction since GDP was first tracked in 1947.

The 32.9% contraction followed a 5% shrinkage of the nation's GDP in the first quarter of 2020 as the coronavirus outbreak was just starting to impact the nation's economy.

But as bad as the GDP contraction was last quarter, it's not quite as dismal as the predictions of some economists who predicted a contraction of at least 34%

And although businesses and manufacturers have been reopening across the nation this summer, a resurgence of COVID-19 is apparently still impacting the nation's jobless statistics. In the week ending July 25, another 1.4 million Americans files initial claims for unemployment benefits and roughly one in five American workers have filed unemployment claims due to the pandemic.

In Missouri, the number of initial unemployment claims inched higher during the week ending July 25, increasing from 12,134 the previous week to 14,804. Still, the number of first-time jobless claims filed by Missouri workers has declined in 14 of the previous 17 weeks from a high of 104,230 during the final week of March.

n

While the nation's GDP shrank considerably during April, May and June, Procter & Gamble Co. reported a 6% increase in its sales during the same period as well as for its latest fiscal year.

P&G, one of Cape Girardeau County's largest employers, has experienced a strong demand for cleaning and paper products during the COVID-19 pandemic, which helped the company post it strongest annual sales gain since 2006 for the fiscal year ending June 30.

According to a report last week in The Wall Street Journal, P&G's strongest growth was in its fabric and home care division, which had a 14% increase in sales during FY20. Brands in the fabric and home care unit include Tide laundry detergent as well as Mr. Clean, Cascade dishwasher detergent and Dawn dish soap.

P&G, headquartered in Cincinnati, has reportedly been able to keep all of its U.S. production facilities open during the pandemic, including the one north of Cape Girardeau, which manufactures disposable diapers, paper towels and toilet paper under the Pampers, Bounty and Charmin brands.

n

Fans of public television could see a stronger signal in a few weeks from WSIU-TV, the PBS affiliate in Carbondale, Illinois.

Jak Tichenor, interim executive director for WSIU on the Southern Illinois University campus, told me the station has installed a new translator in the Cape Girardeau area. Once it's powered up, it will "boost" the station's signal and improve over-the-air reception for WSIU viewers in Southeast Missouri as well as in sections of Southern Illinois and Western Kentucky.

It will also enhance the signal on cable and satellite systems that carry the PBS station, he said.

An exact date for the equipment activation has not been announced, but Jak said it should be just a few weeks from now.

I should know more by mid-August.

n

Dunkin' announced plans last week to close 800, or about 8%, of its U.S. locations. The chain has a store at 1001 N. Kingshighway in Cape Girardeau.Jay Wolz

The coffee and doughnut chain known as Dunkin' (formerly Dunkin' Donuts), announced Thursday it will permanently close as many as 800 of its U.S. locations by the end of the year, along with about 350 of its international stores.

Dunkin' has had a Cape Girardeau location at 1001 N. Kingshighway since February 2016.

Although Dunkin' has not announced which stores it will close, a statement from the company said the 800 stores that will close represent about 8% of its U.S. locations, but they account for only 2% of company sales.

Judging by the long lines I've seen leading up to the local Dunkin' drive-through window, the Cape Girardeau outlet is not among the chain's underperforming locations.

n

Ann Hayes

After nearly 30 years at Southeast Missouri State University, Ann Hayes retired last week from her position as director of University Communications. Her last day in her Academic Hall office was Friday.

Ann joined the university in March 1991 as the school's News Bureau director. For several years, her office was two floors above mine in the Wehking Alumni Center while I was SEMO's director of Alumni Relations. She was always a great resource for me when it came to keeping alumni informed.

During her tenure at the university, Ann served under five SEMO presidents -- Kala Stroup, Bill Atchley, Dale Nitzschke, Ken Dobbins and Carlos Vargas. Over the years, she mentored hundreds of student workers and graduate assistants in the News Bureau and University Communications office.

She wore many hats for the university, from being the school's spokeswoman and managing crisis and emergency communications to serving as SEMO's liaison with print, broadcast and online media outlets throughout the region. (Many of us at the Missourian have her cellphone number on speed dial.)

Best wishes to you on your well-earned retirement, Ann!

Do you crave business news? Check out B Magazine, and the B Magazine email newsletter. Check it out at www.semissourian.com/newsletters to find out more.