The COVID-19 economic recovery has been an interesting one, if that’s how you’d like to describe it. Ever since the start of the recession, it’s been nothing but up, though we’ve had a few bumps in the road. The first one was in June of 2020, when the Fed first warned about inflation and a major economic slowdown. They got through that, and then December rolled around when we saw a record resurgence in COVID-19 cases, which caused a slowdown. Vaccines came to save the day, and then inflation really started to hit. We realized it was transitory, so things were all good. The biggest roadblock, and the most recent one, is the Delta variant, which led to more lockdowns and slowed the global economy.
However, unlike China, the US economy has been very resilient throughout the last few months, and it’s starting to show. Consumer spending in retail increased in the last month, and jobless claims still sit at an all-time low, signalling strength in the economy as companies are holding off on layoffs. Vaccinations are continuing to inch closer to the 70 percent mark, and cases are plateauing which means that mask restrictions and lockdowns will likely decrease. Like we said earlier, the retail sector is playing a major role in this recovery as consumers are shifting their spending towards goods instead of luxuries like air travel, and it seems to be working very well. Economists were expecting a dent, but the Delta variant has only made the slightest scratch on their economy. Do you think that the US will be able to come back quickly?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.