The U.S. economy took another body blow from Covid-19 in July. But just how bad was it?

Whew ! Turns out the U.S. economy didn’t get hurt as badly in July from a resurgence in coronavirus cases as Wall Street feared. But make no mistake: The U.S. recovery did take a blow.

The government said Friday that the U.S. regained 1.8 million jobs in July, a number that in any other month would be...