The National Bureau of Economic Research (NBER) reported in recent weeks that the U.S. economy officially entered a recession in February 2020. This transition brought a 128-month expansion to an end, the longest in post World War II history.1 So what does that mean? At the highest level, the NBER confirmed what most Americans already knew—the COVID-19 pandemic brought business activity to a near full stop. One interesting item from the NBER economic update had nothing to do with a recession. Many economists who commented on the NBER report said they believe the U.S. is moving past the recession and entering a new expansion. Some of them point to the May unemployment report, which showed the economy gained a surprising 2.5 million jobs.2,3 Economists were quick to point out that the U.S. has not experienced three consecutive quarters of negative GDP growth since the late 1940s.4 We remain optimistic about the business cycle, and we’re watching for more “green shoots” in various economic reports. If you see some encouraging signs, please give us a call. We welcome the chance to hear about what you are thinking. |
1. CNBC.com, June 8, 2020 |
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite, LLC, is not affiliated with the named representative, broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. |
U.S. Entered Recession. Now What?
