Is the US Recovery Slowing As Well?

Posted Tuesday, August 25, 2020 by
Skerdian Meta • 1 min read

Everyone was hoping for a v-shaped recovery of the global economy, after the deep recession during the lock-downs. During the past few months, we have seen most economies rebound strongly as expected, but the recovery has slowed, as the services and manufacturing reports from Europe showed on Friday. But, the same reports from the US showed a further expansion this month, leaving contraction well behind. But today’s Philly FED non-manufacturing report came in weaker than in July, showing a slowdown.

Philladelphia FED Non-Manufaturing Index

  • Philly Fed August non-manufacturing index +1.6 vs +0.7 prior
  • New orders +11.6 vs +13.8 prior
  • Full time employment -3.0 vs -8.1 prior
  • Firm-level business activity +17.9 vs +23.7 prior
So, the pace of recovery is clearly slowing, but it’s still a recovery for this survey/indicator. Protests are having a negative impact on the economic rebound, but this is not the best indicator to show the shape of the economy. So we will have to wait for more data to see if the US economy is slowing like in Europe, or if it is still expanding like Friday’s reports showed.


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