There was a jump in stocks this month with large investment firms reporting strong results. October’s earnings reports managed to calm investors. Labor market and inflation numbers were good and provided optimism for those concerned with higher rate estimates.
There have been drops in unemployment too as fewer Americans are collecting benefits – the lowest for 19 months, dropping to less than 300,000. Indeed, according to chief U.S. economist at High Frequency Economics, Rubeela Farooqi:
“The data support the narrative that businesses are increasingly reluctant to let go of workers amid a severe supply shortage. But it is still not clear if the expected supply surge that failed to materialize in August and September will appear going forward.”
The fact that the coronavirus Delta variant’s impact on the economy is waning has also been helpful. While of course the pandemic and its repercussions are still very much a part of everyday life, the emergent panic has waned.
That’s not to say that there is not a huge – and justified – concern about increasing costs, labor and supply chain issues. But at least the above news is giving optimistic hope for economists in some areas.