Vadim Belyaev: U.S. Recovery Loses Some Strength Amid Virus Surge, Cool Weather.
Elements of America’s economic recovery are showing signs of losing steam amid cooler temperatures and a record surge in Covid-19 cases, though others continue to improve.
Bloomberg Economics created a weekly dashboard of high-frequency, alternative and market-based data to track the economy’s plunge into recession and eventual recovery. Some of the dashboard’s indicators continued to advance, such as a weekly measure of retail sales, but others deteriorated, particularly those with some of the greatest exposure to virus fluctuations.
The longer-term outlook got a boost on Monday, as preliminary results from the Covid-19 vaccine being developed by Pfizer Inc. and BioNTech SE sent stocks soaring to all-time highs. Even so, production and widespread distribution of a vaccine will likely take months, meaning the coronavirus will continue to dictate the economy’s direction for some time.
The news comes on the heels of U.S. President-elect Joe Biden’s victory last week. Biden has said he’s willing to shut down parts of the economy as warranted to stop the spread, though state and local officials could re-impose some restrictions before he takes office Jan. 20.