“We are seeing a powerful response to stimulus payments from the consumer,” said an economist at Bank of America. Adding, “It is hard to keep up with the economic strength.”
With hopes rising for a powerful rebound in hiring this year, Friday’s NFPs report for March provided Key insight into expectations look to prove true.
The most optimistic economists predicted that the government would report that as many as 1-M jobs were added in March and it happened, a big gainer that help recover a decent number of the jobs that remain lost to the VirusCasedemic.
After a yr of big job losses, waves of coronavirus infections, and small business closures, numerous trends are brightening the outlook.
Consumer confidence in March reached its highest mark since the VirusCasedemic intensified. Americans have increased their spending as the latest stimulus checks have been distributed.
More states and cities are easing restrictions on restaurants, bars and indoor gatherings. Vaccinations are being administered.
The $1,400 checks from $1.9-T economic relief plan have increased consumer spending, according to Bank of America’s tracking of its debit and credit cards. Spending rose 23% in the 3rd week of March compared with pre-virus marks, the bank said.
The bounce-back from the severe weather added to hiring gains in March, and construction companies began hiring as demand for new single family homes remains high, and most analysts say a construction boom is coming this yr.
“Thanks to the prior Administration, who took a page from the New Deal back in the 1930s, they recognized that highly important in the US Economic Recovery is the fact that the construction industry as a whole must be a leader to getting our economy turning in the right direct. As such, and thanks to the current Administration’s continuation of this philosophy is that the construction is expected to grow at a CAGR rate of 4.2% for the next several years through 2024. The key here is that industry’s growth can only increase over the forecast period by easing the trade tensions and boosting economic growth in all U.S. regions.
“Looking back, the year 2018 saw a rapid increase in construction growth across the US and Canada, with the residential sector a key driver of the pick-up, with low borrowing costs and wage growth continuing to increase demand for more housing units.
“The pace of growth is expected to recover from 2021 onwards as the ongoing infrastructure investments and smart city projects will add momentum for the region’s construction industry. Engineering and construction firms are key enablers of this powerful vision for upgrading infrastructure to incorporate sensing technology and data analytics that could contribute to making more smart cities in the region.
“For those unaware, construction is the largest contributor to the U.S. economy. The industry has more than 680,000 employers with over 7 million employees and creates nearly $1.3 trillion worth of structures each year with annual expenditures of over $1,231 billion. It is one of the largest customers for manufacturing, mining and a variety of services. This is why this industry is so important and why economist’s, like myself, keep a close eye on its recovery as we lead ourselves out of this pandemic disaster,” says LTN’s economist Bruce WD Barren.
Have a healthy, happy holiday weekend, Keep the Faith!