worried inflation here are reasons optimism

Recovery will likely not be as sharp and fast as the collapse of the past few months, but instead slower and more U-shaped given such unpredictability. lost more than 20 million jobs as social distancing measures kicked in, and while jobless claims have leveled off, they are still surpassing 1 million per week, according to the latest Labor Department statistics.Īmid sure signs of a recovery, many investors and analysts believe the rebound will be as fast and steep as the downturn amid Covid-19.

The other key economic indicator, unemployment, has improved from a few months ago, dropping to 11.1% in mid-July from a high of nearly 15% in April, with job growth exceeding expectations. Personal savings skyrocketed in April to 33%, up from 12.7% in March. The sales of durable goods, like cars, are rebounding too, but even people with expendable income are spending cautiously. While the index rebounded to 98.1 in June, new state restrictions amid a resurgence in the virus were expected to dampen consumer sentiments. Consumer confidence tanked amid Covid-19 shutdowns, dropping from a 20-year high of 132.6 in February to 85.7 in April, according to the Conference Board. GDP fell 5% in the first quarter and, by some estimates, plummeted roughly 35% in the second quarter. is in a recession, and the country’s economic risk indicators are nearly universally negative.

Worried inflation here are reasons optimism