Despite the gloom and doom caused by the pandemic, the US economy appears to be growing strong. According to the leading economic index (LEI), the US economy achieved an economic growth rate of 0.9% last July, despite the surge in Delta variant cases. It is also projected that the growth will continue with great speed during the fall season, according to a survey.
Director of Business Cycles Research Ataman Ozyildirim said that LEI figures show that the US economy enjoyed massive gains in July, with “all components contributing positively.”
Isn’t Delta a threat?
As of writing, there is insufficient evidence or study to prove that the Delta variant had a significant impact on the US economy. However, most researchers and health professionals have acknowledged that it is a real threat and must be handled properly.
What’s interesting is that instead of cowering in fear of the new variant, many American companies and individuals seem to have adapted to the new variants as they did with the previous ones.
When the global pandemic started in 2020, the US economy was not spared and came crashing down due to the imposed quarantine measures where no one was allowed to come out. The United States entered a period of recession due to this, which lasted for four months. During this period, businesses closed down except for those that provide essential services. With everything closed and unavailable, the entire economy went to a full stop.
Should we relax our guard?
Things seem to be looking up – and staying that way if the LEI is to be believed. According to Ozyildirim, at the end of April 2020, the index started to show a significant rise which continued up to this day. Yet this growth does not mean things are going back to normal.
The threat of the Delta variant is real, along with the rising inflation rate in the country. These factors can cause the steady growth to stop, but Ozyildirim said they still expect a full 6% growth for the entire year. This growth signals new opportunities to get back what was lost in the past year due to the global pandemic that affected the entire world economy.
The leading economic index or LEI is a gauge with ten economic indicators fashioned to indicate economic highs and lows. The gauge is used to forecast the global economy’s trend in the coming months. Business owners and investors use this tool to analyze the economy and protect themselves from potential economic decline.
Today, Indices Dow Jones Industrial Average and S&P 500 fell by a few points in the market.