Gross Domestic Product
U.S. gross domestic product (GDP) grew 7.4 percent, or $1.3 trillion in Q3, adjusted for inflation. The economy benefited from an increase in consumer spending, a restocking of inventories, exports, new investments in building, equipment and inventories, and new home construction.
Job Growth
The nation has created 11.4 million jobs since May, recouping over half March and April’s losses. But growth is already slowing. Employers added only 661,000 workers in September, less than half the 1.5 million added in August. The nation remains 10.7 million shy of its February level. The recent spike in COVID cases, the expiration of the federal stimulus packages, and uncertainly over the outcome of the presidential election will further slow job gains.
Unemployment
U.S. unemployment peaked at 14.7 percent in April and has steadily improved, decreasing to 7.9 percent in September. But the headline number belies what’s actually happening in the labor market. Since February, 4.4 million Americans have dropped out of the labor force and are no longer counted as unemployed. Factor them back in and the unemployment rate jumps to 10.3 percent.
Home Sales
Existing-home sales grew for the fourth consecutive month in September, hitting a seasonally-adjusted annual rate of 6.54 million, up 9.4 percent from August and 21 percent from September a year ago. Seven out of every ten homes sold were on the market for less than a month.
Retail
Retail continues to recover. The U.S. Census Bureau reports September sales were up 1.9 percent from August and 5.4 percent from September of last year. Those numbers reflect a shift in consumer buying patterns. Unable to travel, attend concerts, cheer at sporting events, or dine out, consumers have opted to purchase goods rather than services. Through September of this year, consumers spent 20 percent less on dining than they did over the same period in ’19. The data also reflect a significant increase in online purchasing, up 20 percent so far this year.
Perryman's Perspective
Houston’s real gross product (RGP) will shrink 4.8 percent this year (December to December) before rebounding 4.2 percent next year. That’s the latest projections by The Perryman Group, the Waco-based think tank that’s been analyzing and forecasting for U.S., Texas, and Texas metros since the early 1980s.
Houston Employment Update
Metro Houston added 24,400 jobs in September, bringing the total recovered since April to 142,600. Houston re-mains 207,600 jobs short of its pre-pandemic level. The gains put Houston just shy of 3.0 million jobs. The region had topped 3.2 million jobs back in February. In a normal year, the region adds 25,000 to 50,000 in Q4, which would put a considerable dent in the COVID job losses. But this hasn’t been a normal year and job gains through December are likely to be subdued.
Innovation Update
At first glance, tech funding in Houston appears remarkably unscathed by the pandemic. Houston-area startups have raised nearly as much venture capital so far this year as they did last year. VC Investments in the region topped $556 million through Q3/20, down only 4 percent from the same period in ’19, according to a Partnership analysis of PitchBook data.
25 January 2021 Economic Outlook Report
Wells Fargo Economics & Financial Report / Jan 30, 2021
In the second installment of our series on economic risks in the foreseeable future, we analyze the potential for higher inflation in coming years stemming from excess demand.
May 2020 Economy at a Glance
Wells Fargo Economics & Financial Report / May 19, 2020
The U.S. is in a severe recession caused by the sudden shutdown due to the COVID-19 pandemic. Since the lock down began, the nation has lost 21.4 million jobs.
This Week's State Of The Economy - What Is Ahead? - 21 October 2020
Wells Fargo Economics & Financial Report / Oct 21, 2020
Mobility is continuing to trickle lower in several major developed market economies. The U.K., France, Italy and Canada have all seen some further modest declines in retail/recreation visits.
This Week's State Of The Economy - What Is Ahead? - 09 April 2021
Wells Fargo Economics & Financial Report / Apr 10, 2021
This week\'s economic data kicked of with a bang. The ISM Services Index jumped more than eight points to 63.7, signaling the fastest pace of expansion in the index\'s 24-year history.
This Week's State Of The Economy - What Is Ahead? - 21 October 2022
Wells Fargo Economics & Financial Report / Oct 25, 2022
The real estate sector has been significantly affected by rising interest rates, with total housing starts falling 8.1% in September. Peering ahead, the forward-looking Leading Economic Index points to a recession in the coming year.
This Week's State Of The Economy - What Is Ahead? - 22 January 2021
Wells Fargo Economics & Financial Report / Jan 23, 2021
Housing starts jumped 5.8% during December. Single-family starts soared 12%, while multifamily starts dropped 13.6%.
This Week's State Of The Economy - What Is Ahead? - 07 February 2020
Wells Fargo Economics & Financial Report / Feb 08, 2020
U.S. employers added 225K new workers to their payrolls in January, which handily beat expectations. But the factory sector shed jobs for the third time in four months, and net layoffs were reported for finance and retail as well.
This Week's State Of The Economy - What Is Ahead? - 21 January 2022
Wells Fargo Economics & Financial Report / Jan 24, 2022
The Texans have earned a top draft position yet again, the Cowboys are home again for the remainder of the playoffs, and inflation concerns that continue to mount, along with ongoing supply chain disruptions, are weighing on homebuilder confidence.
This Week's State Of The Economy - What Is Ahead? - 18 March 2022
Wells Fargo Economics & Financial Report / Mar 21, 2022
it was a big week for economic news as the Astros allowed the TWINS of all teams to sign Carlos Correa to the type of short-term deal that the Astros have historically been open to.
This Week's State Of The Economy - What Is Ahead? - 22 May 2020
Wells Fargo Economics & Financial Report / May 25, 2020
The re-opening of the country is getting underway, with all 50 states starting to roll back restrictions.
