Signs are beginning to emerge that seem to imply that the pandemic-induced recession may be over as jobs, housing and stocks are making a comeback indicating that the US economy is in recovery mode.
Before the pandemic hit the US economy was at its strongest on a variety of fronts. But the lockdowns necessary for public safety sent America into an economic nosedive, drastically affecting industry, businesses, and jobs, bringing about levels of unemployment not experienced in decades as jobless claims reached a record 6.149 million in early April 2020.
Many experts think the painful days are behind us and that the US is now in recovery mode.
Here are a few of the signs: Unemployment has decreased and companies are having a hard time filling many positions, even offering monetary incentives for people to get back to work. Companies are scrambling to fill a record 9.8 million job openings.
Housing is seeing a huge boon, with prices spiking. Stocks are up and the GDP is growing again.
Weekly jobless claims for the week ending June 19 fell by 7,000 to 411,000, the Labor Department said.
On June 24, Reuters reported that core capital goods shipments increased 0.9% in May, the goods trade deficit rose 2.8%, while retail inventories fell and the first-quarter GDP growth was unrevised at 6.4% rate.
On June 9, the Conference Board Economic Forecast for the US economy predicted GDP growth of 9.0 percent (annualized rate) in Q2 2021.
On Thursday, June 24, the NASDAQ and S&P 500 index is hit all-time highs, Reuters reported, thanks to Tesla shares and other top-shelf technology firms.
Currently, the real estate market is experiencing surging prices amid low interest rates that have left scant inventories.
This is led to a lot of homebuyers overpaying for homes in 2021, according to the Home Buying Institute.
Redfin reported “the median home-sale price increased 23% year over year to $361,750, a record high” and that newly listed home prices were “up 13% from the same time a year ago.”
However, according to a new report from Redfin, for the first time in 10 weeks, mortgage rates have ticked up to 3 percent and some are predicting that the housing market may start to cool slightly.
But many in-demand housing markets are seeing prices already up by 30 percent.
Of course, officially, the National Bureau of Economic Research (NBER ), the arbiter in these matters hasn’t given its word that the economic downturn is over. However, some experts believe that will come in the near future. It usually takes the NBER several months until a recession is actually over until it officially declares the end, according to CNN Business.