New investments in companies

New investments in companies

The investment of companies in the equipment has rebounded sharply in the third quarter, while investment in intellectual property has probably rebounded at a more moderate pace and that commercial construction continued to decline, the latter does not require much more office or hotels.

In total, business investment seems to have increased at an annual rate of 22.4%, which would add 3.1 points to real GDP growth. (22.5 times the 14% share of business investments in GDP equals 3.1).
The rise of real estate in half-hue

Residential construction experienced a rapid recovery in the third quarter and much remains to be done, with a renewed desire for more space in the suburbs and a shortage of housing in many parts of the country.

Real estate growth would include an annual rate of 15%, which would add 0.6 point to real GDP growth. (15 times the 4% share of residential construction in GDP equals 0.6).
The road is still long

The United States still has a long way to go before straightening up completely. About 10.7 million of the 20 million jobs lost because of the pandemic have not yet been recovered, 24 million Americans always benefit from a form of unemployment assistance and thousands of small businesses are on the edge. Bankruptcy.

The failure of Trump and the Congress to conclude a bipartite recovery agreement before the day of the elections could also undermine the momentum of the already slow recovery, in particular with the skyrocketing of a third wave of CVIV-19 cases in the USA.

Income from individuals fell by $ 540.6 billion in the third quarter, while unemployment benefits and recovery payments offered by the CARES Law of $ 2.2 trillion expired. This law has contributed to an increase of $ 1.45 billions of personal income during the second quarter, which, according to economists, has avoided an even more serious recession.

The available personal income also decreased by 13.2% in the third quarter, after increased by 44.3% in the second. And personal savings reached $ 2.78 trillion in the third quarter, after reaching $ 4.71 trillion in the second quarter.
The economy can switch after a new wave

According to Johns Hopkins University, coronavirus cases in the United States reached a record of 71,832 cases on average over the last seven days. According to the CNBC, more than 20 states reported a record number of new means. In addition, according to the data of the COVID monitoring project, the new cases increase by 5% or more in 36 states.

In Europe, the German officials agreed to impose a partial confinement of four weeks and the French government announced a national containment in order to curb the resurgence of new CIVID-19 infections.

The President of the European Commission, Ursula von der Leyen, said the European Union, the United Kingdom, Norway, Switzerland and Iceland alone recorded $ 1.1 million over the last seven days. Russia has also increased new CVIV-19 cases.

Airlines, pleasure trips, hotels, restaurants, bars, cinemas, games and sports and other entertainment companies will hardly be affected by new locking and restriction. These segments of the economy could experience significant periods of relaxation in the future.

The lack of budget stimulus and the delay in the complete reopening of the US economy due to the skyrocketing of new CVIV-19 cases could significantly reduce consumer spending in the United States.

Despite a third-quarter GDP record, US GDP has reached an annual rate corrected for seasonal changes of $ 18.58 trillion, less than $ 19.24 trillion in the fourth quarter of 2019. Overall, Economic activity is always $ 660 billion, 3.5% less than before the pandemic.