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Missouri Extension Covid Economy 2020 04

Summary

Issue 3 of the COVID-19 Missouri Economy Indicators Update, dated 20 April 2020 and issued by Exceed, College of Agriculture, Food and Natural Resources, written by an assistant extension professor. It reports credit card revenue changes from Womply.com for the week ending April 11 compared with the same week in 2019, ranging from 73% for retail and wholesale to -83% for transportation, with restaurants at -54% and lodging places at -57%. It states that Womply data suggest 6 out of 10 Missouri restaurants remained open with greatly reduced sales. A section on meat processing reports that the industry employed over 18,000 workers in 140 business across Missouri in 2019 and notes that producers announced temporary closures due to COVID-19 illnesses. The brief closes with links to U.S. Department of Agriculture, Missouri OneStart and Missouri Small Business Development Center resources.

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COVID-19 Missouri Economy Indicators Update                                                    ISSUE 3 | 20 APRIL 2020


The novel coronavirus, or COVID-19, pandemic is a global health concern and the focus of many efforts to
understand, contain, and treat this disease. In addition to these tremendous efforts, we must also consider
the coronavirus’ impact on Missouri’s economy. Like the health impact data, timely indicators are limited at
the moment. However, this periodic Missouri Economy Indicators Update series will highlight some figures to
watch and potential resources that can help businesses navigate this situation.

                                                                 Percent Change in Missouri Revenue
 Missouri Revenue Changes                                Week Ending April 11 Compared to Same Week in 2019
                                                                    Week ending in April 4 is Grey for Comparison
 Credit card transactions for the week ending
 April 11, compared to the same week in                 Retail and Wholesale                               Week Ending April 11   73%
 2019, show how revenue has changed by
 select business activities. Weekly figures can    Food and Beverage Shops                                          33%
 fluctuate so looking at these changes over a          Sports and Rec. Places                                        29%
 longer time period is helpful. Most business
 sectors also had similar revenue changes               Professional Services                                 13%
 over the year when looking at the week                        Local Services                                11%
 ending April 4 (grey bars).
                                                                                            Week Ending
                                                  Health and Medical Centers                     April 4    8%
 The credit card data, from Womply.com,
 shows that some retailers (e.g. sporting                        Pet Services                                6%
 goods, hardware) and food shops (e.g.            Quick Serve Food/Beverage                                1%
 grocery stores) have seen positive change
 these last two weeks whereas                                  Auto Services                        -9%
 transportation services, health and beauty
                                                           Bars and Lounges                       -13%
 stores, lodging, and restaurants are down
 considerably.                                        Public Service and Gov.              -35%

 It is no surprise that tourism-related                          Restaurants        -54%
 industries, such as restaurants and hotels
                                                              Lodging Places        -57%
 have suffered, but the loss in revenue has
 spread to other industries as well.                Health and Beauty Stores        -59%
 Data source: Womply.com                                      Transportation -83%



Restaurants have been on the front-line of lost sales and layoffs over the past few weeks. Womply data
suggest that 6 out of 10 Missouri restaurants, for the week ending April 11, remained open but with greatly
reduced sales. The decline in this industry, coupled with the increase in food sales at grocery stores, has ripple
effects that hit other sectors of the economy such as food processing, transportation, and farming. Over the
past couple decades people have been eating out more, causing a gradual shift in supply chains to
accommodate the increasing share of food going to restaurants. The abrupt change to supply grocery stores at
higher levels, amid the other challenges this health crisis presents, has put a strain on a variety of industries.

Meat Processing Industry in Missouri                                       Meat Processing Employment by County
                                                                                           2019 Employment
One major supplier to both restaurants and
grocery stores are meat processors. In the last
week producers such as Smithfield, however,
have announced temporary closures due to
COVID-19 illnesses in Iowa and Missouri. In
2019 the meat processing industry employed
over 18,000 workers in 140 business across
Missouri. As the map shows, employment was
especially high in Buchanan (St. Joseph) and a
few southwest counties. In addition to
contributing to Missouri's employment and
exports, these processors are the main
connection between cattle, hog, and chicken
producers and the consumer market.
Disruptions in this one manufacturing industry
can have significant consequences for the
state's economy and food supply.



Data sources: U.S. Bureau of Labor Statistics, the Missouri Economic Research and Information Center, and EMSI county employment estimates

Additional Resources
•   U.S. Department of Agriculture has links to helpful resources and FAQs related to food at:
    https://www.usda.gov/coronavirus
•   Missouri OneStart has information about companies that are hiring at:
    https://missourionestart.com/now-hiring/
•   Missouri Small Business Development Center COVID-19 Resource Page has a small business guide to the
    CARES act, video guides, and other resources at: https://sbdc.missouri.edu/sbdc-covid-19-resources


This brief is the third in a series to explore economic indicators, impacts associated with the COVID-19 pandemic, and to
highlight resources that may help our businesses during this difficult time. Future updates will be available in the coming
weeks at: https://tinyurl.com/ExceedEconomyIndicators

Author: Alan Spell, Assistant Extension Professor, alan.spell@missouri.edu



Exceed | Division of Applied Social Sciences | College of Agriculture, Food and Natural Resources


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