US | Biden’s American Jobs Plan offers lots of fuel for growth
As proposed, President Joe Biden’s American Jobs Plan would brighten the US industrial and regional outlook. Model simulations indicate the stimulus could benefit the manufacturing and construction sectors most, raising their output around 3.5% by the end of 2023.
What you will learn:
- Our modeling indicates that the proposed American Jobs Plan (AJP) would deliver the greatest boost to the manufacturing industry, propelling faster growth by about 1.8ppts on average in 2022 and 2023. This stimulus would also create an additional 290k manufacturing jobs by year-end 2023 relative to a no-stimulus scenario.
- The AJP would also strengthen services, most significantly professional and business services. Activity in the professional and business services industry would grow 1.3ppts faster on average in 2022 and 2023.
- Among the largest state economies, California, Georgia, Michigan, and North Carolina would benefit the most. These states would experience a 1ppt increase in output growth in 2022 and 2023. At the metro level, activity in the San Francisco Bay area would receive the strongest gains.
Tags:
Related Services
Post
Nowcast shows wage growth slowing sharply
Our sentiment data, developed with Penta, suggests that UK private sector wage growth slowed sharply in March and early-April. If official data mirrors our sentiment indicator, it should keep the Monetary Policy Committee on track to cut interest rates in the summer.
Find Out More
Post
The euro and depreciation – shake, shake it off
Our new forecast assumes a slower euro appreciation against the dollar over the coming years than we previously anticipated. Relative productivity, terms of trade, and the current account will likely be less supportive of the euro than we thought. In addition, a stronger stock market than initially envisaged will attract more financial flows into the US than we had expected.
Find Out More