economy

Meanwhile, In Good News…

And now, for some good news. Business activity in the US is proceeding at the briskest pace since February of 2019, according to the flash read on IHS Markit's composite PMI, out Friday. At 55.5, the gauge printed well ahead of estimates and up from September. In stark contrast to the situation in Europe, the services sector is behind the improvement. "US output growth regained growth momentum in October, as business activity rose at the fastest rate for 20 months and business optimism improved markedly," IHS Markit said, in the color accompanying the release. "The upturn was largely driven by service providers, though manufacturing firms also reported a further solid increase in production." This comes as public health officials continue to warn that the country may be in for a daunting winter, as virus caseloads grow. The White House and most Republican governors have resisted the reimposition of COVID containment protocols, at least to the extent they might slow economic activity. That's been good for the services sector, which was obviously waylaid during March and April. And yet the trade off between economic activity and lives represents a vexing quandary for politi
Subscribe or log in to read the rest of this content.

4 comments on “Meanwhile, In Good News…

  1. Correlation is not causation.

    However …

    Business activity shows increase, as virus cases accelerate.

    • Bob says:

      Maybe they are both driven by another factor – people are mixing / shopping more, causing more business activity and more infection.

      • Sort of a circular argument overall. Dark winter coming? Here in my state rumblings are that we might be again in ‘Stay at Home’ order by end of the month. Coffee will only be available ‘to go’.

  2. Alternatively, areas where people comply with testing, tracing, social distancing, and mask wearing could get to reduce the correlation between economic activity and virus contagion. I wonder if there is a “CDC-compliance” index by region. Anyone could point to something like that?

Speak your mind

This site uses Akismet to reduce spam. Learn how your comment data is processed.