January 2020 Economic Recap
The coronavirus continues to take a toll on a worldwide scale, with more than 1000 confirmed dead and over 60,000 confirmed cases. More than 850 of those deaths are confined to Hubei province, where the virus is thought to have originated. Cities remain quarantined, with the situation becoming even more dire as hospital resources are spread thin. Market reaction has been relatively muted thus far, but the much-watched 3M-10Yr portion of the yield curve is on the brink of inversion.
The U.S. economy grew at a steady rate of 2.1% in the fourth quarter of 2019, the slowest pace since 2016. Pulled down by the U.S. China trade war and a slowing global economy, the indicator was simultaneously bolstered by a strong labor market, consumer spending, and confidence levels. Net exports also provided support to the report, as exports rose and imports dropped due in part to tariffs on imports from China. Meanwhile, residential investment improved while business investment unsurprisingly declined.
For a deeper consideration of the economic data released during January, please follow the links below: