Virus surge makes US weak link in global economic recovery

FRANKFURT, Germany (AP) — People in China are back to buying German luxury cars. Europe's assembly lines are accelerating. Now the global economy is waiting for the United States to get its coronavirus outbreak under control and boost the recovery, but there's little sign of that.

The United States’ fumbling response to the pandemic is casting doubt on its economic prospects and making it one of the chief risks to a global rebound.

After springtime restrictions, many U.S. states prematurely declared victory over the virus and began to reopen their economies, leading to a resurgence in COVID-19 cases. Confirmed infections are rising in most states, and many businesses have had to scale back or even cancel plans to reopen. And while it does not dominate global commerce like it did 20 years ago, America is still by far the biggest economy - accounting for 22% of total economic output, versus 14% for No. 2 China, according to the World Bank.

That makes its handling of the pandemic and its economy crucial for companies like Officina del Poggio, a producer of luxury handbags in Bologna, Italy, that sells 60% its vintage motorcycle-inspired satchels to U.S. customers.

Company owner Allison Hoeltzel Savini said retail sales dried up during the spring. She had already suffered a blow when Barneys, her main client, went bankrupt and didn't pay for the spring-summer collection that had shipped.

Hoeltzel Savini said she has had to hold off on new hires, and hasn’t been able to do her usual sales trip to the United States. She got some orders by trying to find consumers directly through newsletters and social media, but remains cautious about the future, as she sees the U.S. market for her goods continuing to slow down.

"I am really concerned for the next season, if wholesale clients will be placing orders,’’ she...