This Week's State Of The Economy - What Is Ahead? - 29 January 2021

By: Taro Chellaram /Wells Fargo Economics & Financial Report/Feb 09, 2021

This Week's State Of The Economy - What Is Ahead? - 29 January 2021

U.S. - Loss of Momentum Sets Up Weak Q1, but Recovery Pace Contingent on Vaccine Deployment

  • Economic data came in largely as expected this week and suggest continued economic recovery.
  • Real GDP growth advanced at a strong 4% annualized rate in the fourth quarter. The loss of momentum toward the end of the quarter, however, sets up a weak reading for growth in the first quarter of this year.
  • An additional 847K workers filed an initial claim for unemployment insurance. The labor market isn't expected to meaningfully recover until the virus is brought under control.
  • The FOMC largely left policy unchanged at its meeting this week. It kept the federal funds rate at the zero lower bound and will continue to purchase Treasury securities and mortgage-backed securities at the current rate. See Interest Rate Watch for more detail.

 

Global - Two Roads Diverged in the Global Economy

  • In what was a relatively quiet week on the international economic data front, two major economies reported real GDP data for Q4-2020. After almost a year since COVID emerged, South Korea's initial headwinds have turned into tailwinds, and the real GDP data reported this week provided evidence that the country's economy weathered 2020 fairly well given the circumstances.
  • Mexico also reported Q4-2020 real GDP data this week, and it showed the ongoing economic challenges facing America's southern neighbor. The pace of decline on a year-over-year basis lessened, but the Mexican economy was still 4.5% smaller in Q4-2020 compared to the year prior.



This Week's State Of The Economy - What Is Ahead? - 03 May 2024

The Federal Reserve can afford patience thanks to a resilient labor market. During April, total nonfarm payrolls rose by 175,000 net jobs, continuing a string of solid monthly payroll additions.

25 January 2021 Economic Outlook Report

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.

This Week's State Of The Economy - What Is Ahead? - 15 January 2021

Retail sales fell 0.7% in December, the third straight monthly decline. Sales are still up 2.9% over the year, however.

This Week's State Of The Economy - What Is Ahead? - 27 January 2023

Real GDP expanded at a 2.9% annualized pace in Q4. While beating expectations, the underlying details were not as encouraging. Moreover, the weakening monthly indicator performances to end the year suggest the decelerating trend will continue in Q1.

August 2020 Economy At A Glance

Downstream involves the refining and processing of oil and natural gas into fuels, chemicals, and plastics. All three sectors are well-represented in Houston.

This Week's State Of The Economy - What Is Ahead? - 09 October 2020

Weekly first time unemployment claims highlighted an extraordinarily slow week for economic news. Jobless claims fell slightly but continuing claims fell by one million.

This Week's State Of The Economy - What Is Ahead? - 27 May 2022

it looks like higher mortgage rates are starting to have some effect on the housing market as April...

This Week's State Of The Economy - What Is Ahead? - 07 October 2022

higher interest rates and inflation appear to be weighing on manufacturing and construction, yet service sector activity remains fairly resilient.

This Week's State Of The Economy - What Is Ahead? - 31 March 2023

This week brought glimpses of market stabilization after weeks of turmoil. Although consumers seem unfazed by the uproar, tighter credit conditions coming down the pipeline will likely weigh on growth.

This Week's State Of The Economy - What Is Ahead? - 07 February 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.


Instagram

@ tcgcrealestate

Subscribe Now! IT's Free

Stay up to date with all news coming straight in your mailbox.

Copyright © 2024 TC Global Commercial. All rights reserved.