Main economic indicators show strong growth in November | Economy
The index of economic activity rose sharply in November, the Conference Board reported on Monday.
The organization’s leading economic index rose 1.1%, after rising 0.9% in October and above estimates. The coincident index rose 0.3%, while the lagging index declined 0.1%.
“Overall, the current behavior of composite indices and their constituents suggests that the expansion of economic activity will continue in the near term,†said the Conference Board.
The report, however, does not reflect the effects of the omicron variant of the coronavirus, which is spreading rapidly across the country. It also does not reflect the negative effects that the collapse of President Joe Biden’s Build Back Better legislation will have on the economy with the expected stimulus it would have provided in the future.
Indeed, Goldman Sachs lowered its growth forecast on Monday to 2% in the first quarter, against 3% previously, and 3% and 2.75% in the following two quarters, against 3.5% and 3% in its estimates. previous ones.
Political cartoons on the economy
“Consumer Confidence in December is released on Wednesday, where we look to improve labor market conditions to provide underlying support,†wrote Sam Bullard, managing director and senior economist at Wells Fargo Corporate & Investment Banking on Sunday. “That said, the increase in COVID cases from the Omicron variant poses a risk and could lower confidence.”
The economy is currently showing strong consumer demand and a steadily improving labor market. But companies also face continued disruptions in their supply chains and difficulties in hiring workers.
But as countries around the world impose restrictions due to the growing spread of the omicron, with European countries in particular enforcing lockdowns, there are fears that economic growth may be hampered.
Markets opened sharply lower on Monday, with the Dow Jones Industrial Average falling more than 600 points after the 9:30 am opening. Observers were expecting a hectic week on Wall Street with a shortened schedule due to the Christmas holidays and year-end maneuvers by traders to clean up their portfolios.