The country’s gross domestic product (GDP), an estimate of economic activity across the U.S., has surpassed pre-pandemic levels. By that general measure, the economy has fully recovered.
Broad segments of the workforce have endured little economic hardship during the pandemic. Many jobs performed at a desk in an office are just as easily performed at a desk in someone’s home. And with fewer places to spend money during much of the pandemic, plus three stimulus checks, many Americans saved more than they might have otherwise. The personal saving rate ballooned to 33.7 percent in April of 2020 and remained well above pre-pandemic levels until September of 2021. In September, it finally dropped to 7.5 percent, below the 8.3 percent from February of 2020, the month before the pandemic started. On Face the Nation back in June, Bank of America CEO Brian Moynihan estimated that its customers had not spent 65-70 percent of their last two stimulus checks at that point. The extra savings combined with pent-up demand likely helped drive the broader economy during the rebound.
The housing market has also surged, thanks to low interest rates and people stuck at home realizing the limitations of their living space. The National Association of Realtors recently reported that the national median sales price for an existing home hit $352,800 in September, up 13.3 percent from September of 2020. Much of that rise was helped along by houses priced above the median. Housing inventory decreased over August, and was down 13 percent year over year. And of the homes that sold in September, 86 percent were for sale for less than a month.
The stock market continues to perform well too. Despite bumpy weeks here and there, the Dow Jones remains far above where it was at this time last year. It has regularly approached record territory. The market closed Friday evening at 36,098 as compared to 29,479 at this time a year ago. Concerns about the Delta variant and slow vaccination rates in parts of the world still linger. Overall COVID case numbers continue to fall, but mask guidelines remain more stringent in some places. The Food and Drug Administration’s (FDA) full approval of the Pfizer vaccine, along with the approval of booster shots for those at risk or over 65 years old, has been good news for the market. Individual investors who saved their stimulus cash remain invested. Bigger investors continue to bet on a strong economy in the months ahead.
> The country’s gross domestic product (GDP), an estimate of economic activity across the U.S., has surpassed pre-pandemic levels. By that general measure, the economy has fully recovered.
> Broad segments of the workforce have endured little economic hardship during the pandemic. Many jobs performed at a desk in an office are just as easily performed at a desk in someone’s home. And with fewer places to spend money during much of the pandemic, plus three stimulus checks, many Americans saved more than they might have otherwise. The personal saving rate ballooned to 33.7 percent in April of 2020 and remained well above pre-pandemic levels until September of 2021. In September, it finally dropped to 7.5 percent, below the 8.3 percent from February of 2020, the month before the pandemic started. On Face the Nation back in June, Bank of America CEO Brian Moynihan estimated that its customers had not spent 65-70 percent of their last two stimulus checks at that point. The extra savings combined with pent-up demand likely helped drive the broader economy during the rebound.
> The housing market has also surged, thanks to low interest rates and people stuck at home realizing the limitations of their living space. The National Association of Realtors recently reported that the national median sales price for an existing home hit $352,800 in September, up 13.3 percent from September of 2020. Much of that rise was helped along by houses priced above the median. Housing inventory decreased over August, and was down 13 percent year over year. And of the homes that sold in September, 86 percent were for sale for less than a month.
> The stock market continues to perform well too. Despite bumpy weeks here and there, the Dow Jones remains far above where it was at this time last year. It has regularly approached record territory. The market closed Friday evening at 36,098 as compared to 29,479 at this time a year ago. Concerns about the Delta variant and slow vaccination rates in parts of the world still linger. Overall COVID case numbers continue to fall, but mask guidelines remain more stringent in some places. The Food and Drug Administration’s (FDA) full approval of the Pfizer vaccine, along with the approval of booster shots for those at risk or over 65 years old, has been good news for the market. Individual investors who saved their stimulus cash remain invested. Bigger investors continue to bet on a strong economy in the months ahead.
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