US | The changing face of manufacturing’s rebound in 2021
US manufacturing activity is currently above pre-coronavirus levels, marking
the fastest and strongest recovery in the past 60 years. A durable goods snapback in the latter half of 2020 powered the rebound, while nondurables
recovered more slowly. With manufacturing output now above its pre-recession level, we anticipate the recovery dynamics will flip this year, with growth in nondurables taking the lead.
What you will learn:
- Robust demand for automobiles and computers and electronics supported manufacturing’s rapid comeback in H2 2020.
- Looking ahead, nondurable goods will lead the manufacturing sector’s recovery in 2021. Chemicals, food and beverage, and petroleum and coal will be the main sources of growth.
- With more than half of states having recouped their pandemic-induced losses by the end of 2020, we expect all states to make up their losses by Q2 2021.
Sterling’s woes, Kwarteng’s vows, Bailey in the middle
The negative market reaction to last week's fiscal announcements appears to be a function of doubts over the credibility of the UK government's long-term fiscal plans. Though we think the structural position is not as bad as last Friday's drop in asset prices implies, it's clear the government will struggle to retain credibility if it fails to engage with market concerns.Find Out More
BoJ to look through a temporary decline in monetary base
The Bank of Japan (BoJ) left monetary policy unchanged at today's (22nd Sep) meeting, maintaining current short- and long-term interest rates, despite another wave of yen weakening and upward pressures on JGB yields.Find Out More