Accelerationism U.S. Economic Outlook

aleksejse

The economy likely recovered robustly in Q3, after Q2’s unprecedented contraction due to the blow dealt by Covid-19. In September, the unemployment rate dropped 0.5 percentage points from the month prior while non-farm payrolls continued to rise, although they were still down 10.7 million compared to February. This, coupled with consumer confidence hitting a six-month high, likely boosted private spending, as suggested by a jump in auto and clothing sales in the same month. Furthermore, upbeat construction activity and a surge in housing starts in Q3 should have supported residential investment. Meanwhile, Joe Biden and the Democrats are currently leading the polls ahead of the presidential elections on 3 November. Under a Biden administration, economic growth would likely benefit from increased spending on infrastructure and social security, as well as a less disruptive foreign trade policy.