Page 11 - aruba-today-20201016

A11
business Friday 16 OctOber 2020
Pandemic hammers small businesses vital to economic recovery

By PAUL WISEMAN lishes reviews of restaurants,
AP Economics Writer bars and other businesses
WINCHESTER, Va. (AP) — In online, reports that nearly
a normal year, hundreds 164,000 businesses on its
of book lovers would have website have closed since
descended on Winchester March 1, 98,000 of them
this summer for Shenan- permanently.
doah University's annual Steven Hamilton, an econ-
children's literature confer- omist at George Washing-
ence. Some would have ton University, estimates
made their way to Christine that 420,000 U.S. small busi-
Patrick's bookshop down- nesses had closed perma-
town. Winchester Brew nently by July 10.
Works would have rolled And small businesses' trou-
out kegs this month for Ok- bles aren't confined to
toberfest revelers. The Hide- their owners. They gener-
away Café would be ad- ate nearly 44% of U.S. eco-
vertising its monthly Divas nomic output, according
Drag Show. But 2020 is no to the Small Business Ad-
normal year. The literature ministration, and account
conference, Oktoberfest for two-thirds of new hiring.
and drag shows have all (The SBA generally defines
been cancelled — casu- small businesses as those
alties, like so much else, of Pedestrians walk along the downtown mall area in the Old Town Wednesday Oct. 7, 2020, in that employ no more than
COVID-19. Winchester, Va. Associated Press 500 workers.)
The pandemic has ham- In addition to their eco-
mered small businesses promote and preserve lo- Mayor John David Smith Jr. struck in early spring, the nomic impact, small busi-
across the United States — cal enterprises. Founded "Small businesses and fami- American economy fell nesses define communities.
an alarming trend for an in 1744 and fought over lies are hurting.'' into a sickening freefall "Let's talk about the tapes-
economy that's trying to repeatedly during the Civil Some Winchester busi- as businesses everywhere try of people and commu-
rebound from the deep- War, Winchester, 75 miles nesses folded quietly in the shuttered and consumers nities,'' said Andre Dua, a
est, fastest recession in U.S. west of Washington, D.C., spring, he said, choosing stayed home to avoid in- senior partner at the McK-
history. Normally, small em- at the northern edge of the not to renew their leases. fection. insey consultancy, who has
ployers are a vital source Shenandoah Valley, years Others are holding on. Even though hiring has studied COVID-19's impact
of hiring after a recession. ago blocked off several They're getting govern- partly rebounded, the Unit- on small businesses. "What
They account for nearly blocks to create a pedes- ment aid and loans or re- ed States is still down 10.7 is New York without its res-
half the economy's output trian mall downtown — a adjusting their operations million jobs since February. taurants?''
and an outsize portion of bulwark for local businesses to reach customers online. Lacking the credit access Or Brooklyn without its bou-
new jobs. Roughly one in that must compete against Some are now offering and cash stockpiles of larg- tiques?
five small businesses have the big box stores on the curbside service and deliv- er companies, small busi- Diana Kane opened her
closed, according to the outskirts of town. eries or are benefiting from nesses were especially vul- clothing and jewelry shop
data firm Womply. But city planning is no residents who buy local to nerable to the economy's on Brooklyn's Fifth Avenue
Small companies are strug- match for a global pan- keep cherished Winchester sudden stop. in 2002, before that New
gling even here in a city of demic. "We're in such a businesses from going un- Many crumpled under the York City borough was
28,000 that works hard to weird, weird time,'' said der. When the pandemic pressure. Yelp, which pub- hip.q

U.S. wholesale prices up 0.4% in September as food costs surge

By MARTIN CRUTSINGER sharpest rise since a 5.6% While the September rise in
AP Economics Writer spike in May, as coronavi- wholesale prices was big-
WASHINGTON (AP) — U.S. rus-related shutdowns at ger than expected, econ-
wholesale prices jumped food processing plants trig- omists said the trend over
0.4% in September as food gered shortages. the past year shows that
costs rose by the largest For September energy pric- inflation remains subdued,
amount since May. es fell for a second month, far below the Federal Re-
The Labor Department said dropping 0.3% after a 0.1% serve's 2% target for annual
Wednesday that the Sep- dip in August. increases.
tember increase in its pro- The government reported "Inflation has accelerated
ducer price index, which Tuesday that inflation at the from a resumption in ac-
measures inflation before retail level was up 0.2% in tivity. For now, the trend
it reaches the consumer, September, just half the Au- remains muted, driven by
followed a 0.3% rise in Au- gust gain, even though the weak demand and ample
gust and a 0.6% surge in price of used cars jumped excess capacity," Rubeela
July which had been the by the largest amount in Farooqi, chief U.S. econo-
biggest monthly gain since more than a half-century. mist for High Frequency
late 2018. Over the past 12 months, Economics, said in a re-
The 0.4% September rise inflation at the wholesale search note.
was bigger than econo- level is up just 0.4% while The increase in food costs In this May 10, 2020 file photo, a shopper pushes his cart past
mists had been expecting core inflation, which ex- reflected higher prices for a display of packaged meat in a grocery store in southeast
and reflected in part a 1.2% cludes volatile food and corn, fresh vegetables and Denver.
increase in food costs, the energy costs, is up 1.2%. beef.q Associated Press