After a quarter of record-breaking gains, the U.S. economy has lost momentum. COVID-19 is resurgent and the weather has turned cold, keeping more consumers home and weighing on the recovery.

With promising developments surrounding vaccines and fiscal stimulus, there is reason to be optimistic for conditions improving in the near future. Consumers and businesses are eager to return to their prior lifestyles and levels of activity. Though it will bring its own surprises, we hold out hope that 2021 will be a better year than 2020. But at the moment, the economy is working through a slower interval.

The disruption from COVID-19 has endured longer than most of us initially anticipated. Recent news gives us hope that this disruption has an end point. Additional support to head off lasting financial damage will be a worthwhile investment. For now, we wait out this crisis during these darkest days of winter.

Key Economic Indicators

USEO - December 2020 - Chart 1