The economic dam is bursting and the economy is booming. Demand in the US was described as “very, very strong” and “phenomenal” thanks to strong consumer balance sheets and vaccinations. Supply chains are still disrupted and there are significant inflation pressures.
Succinct Summary: The economy was rebounding in May and June, but the recovery seems to have stalled out as infections have rebounded. CEO commentary was particularly negative last week. Business leaders are rapidly losing confidence and do not see a V-shaped recovery materializing. There’s a sense that government stimulus appears to be the only thing propping up the economy and it’s creating distortions in unemployment and financial markets. Still (perhaps because of this stimulus) the hot housing market suggests that consumers may not actually be in such bad shape after all–just spending on different things.
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Succinct Summary: The economy has had a strong rebound, but the rising virus cases in some states are a cause for worry. Consumers are fatigued from the virus but starting to accept that it may take a while for things to get back to normal. And the old normal may never return. Technology companies have been major beneficiaries of quarantine. Companies are “splurging” on tech.
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