A More Complete Picture of Q3 Emerges
Region’s Economic Preview
October 12, 2020
Economic data from September point to annualized third-quarter GDP growth of just over 30%, according to a forecast by Birmingham-based Regions Bank. That follows an annualized GDP contraction of 31.4% in Q2. “Our forecast would leave the level of real GDP roughly four percent below the level as of Q4 2019, a gap which it will take some time to fill,” says Regions’ Chief Economist Richard Moody. August wage and salary increases offset the expiration in late July of the Federal Pandemic Unemployment Compensation (FPUC) program. “To be sure, spending on services remains well below pre-pandemic levels, but some of the foregone spending on services has been diverted to spending on goods,” Moody says. “Top-line sales will get a big lift from motor vehicle sales and online sales.”
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