With just a few hours left, US (U.S.) elections will take place amid the global health crisis that struck earlier this year.
A trillion dollars of stimulus money was announced and interest rates dropped to a very low level to reduce the impact of the Covid-19 pandemic. Several sectors have shown recovery such as the retail and employment sectors. The number of cases of Covid-19 infection is increasing and becoming a risk for countries still waiting for the vaccine to be announced.
Here are some facts about American economic situation before Election Day.
1. Household spending has risen sharply followed by a surge in business spending that has driven the world's largest economic development to grow at the fastest pace since the 1940s in the third quarter. Despite the high growth rate, the GDP forecast for the year is still declining from peak levels.
2. Consumer power recorded positive growth where retail sales value was above the pre-pandemic level. The people have converted the expenses used for tourism to home improvement expenses.
3. Low mortgage rates have prompted U.S. citizens to buy homes especially for those working from home.
4. Factory production also soared after the curfew measure was withdrawn. There are signs that the manufacturing sector will continue to grow.
5. Business investment shows little recovery in some sectors such as communications, machines and computers. However, future prospects are uncertain as government spending is heavily focused on addressing Covid-19.
6. The Labor market has recorded the worst economic downturn. However, there have been signs that the labor market is recovering despite still slow levels.
