At least that is what economists are hoping.
Omicron prompted infections to skyrocket, companies to battle and employees to remain house sick in late December. But earlier than the variant arrived on US shores, the restoration was chugging alongside.
That means the fourth quarter might show to be the one which squeaked via, slotting between Delta and Omicron — and searching fairly good.
Economists predict US gross home product, the broadest measure of financial exercise, grew at an annual price of 5.5% between October and November, in accordance with consensus estimates from Refinitiv.
By distinction, the primary three months of 2022 might replicate among the worst financial development for the reason that 2020 lockdowns.
“In terms of growth momentum, January is on track to be the worst month since December 2021,” stated Jefferies chief economist Aneta Markowska. “We have penciled in a 1.5% growth rate for Q1 GDP,” she stated.
Rising inflation and early vacation buying
Just as a result of the economic system might have gotten fortunate within the ultimate quarter of the yr does not imply it was devoid of issues.
US customers, the spine of the economic system, had loads to grapple with.
Higher costs — together with transport delays and Omicron’s arrival — weighed on how Americans have been feeling by year-end. And this sentiment continued into the brand new yr.
On Tuesday, client confidence knowledge revealed that Americans really feel okay in regards to the economic system proper now, with loads of jobs accessible and low rates of interest, regardless of Omicron. But the near-term outlook is way more unsure between rising rates of interest and the worry of extra potential Covid variants disrupting the restoration.