# The Up Tick in US Borrowing Rates Says:  The Economy is Making Up for Lost Ground

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Last modified: 2021-03-15

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By Paul Ebeling · 2021-03-15
Tags: Fed, economy, growth, cash, GDP, income, consumer, spending, employment, Headline News, Top Stories, Paul Ebeling, virus, econ, Coronavirus, Covid19, manufacturying, viru
Signed: no (published before platform launch).
Nothing in this article is investment advice.

#economy

"“*The V-Shaped recovery in GDP will remain V-Shaped during 1-H of this year and likely through the end of the year*” --Paul Ebeling

Archive this:

- Economic growth in Q-1 could hit 10%, according to a reliable Fed tracker.
- That comes with Congress spending $1.9-T to aid, relieve and stimulate various areas.
- Manufacturing is at its highest level since Y 2018, with prices rising and inventories depleted
- Employment remains the Key weak spot, but encouraging signs are seen ahead.

The US economy has come back strong in Y 2021, with Q-1 growth set to defy the best expectations as another fresh injection of cash is happening now..

Manufacturing data  showed the sector at its highest growth mark since August 2018. That report from the Institute for Supply Management in turn helped confirm the notion among economists that output to start the yr is far better than the low single-digit growth many had been predicting in late Y 2020.

The Atlanta Federal Reserve, which tracks data in real time to estimate changes in gross domestic product, now is indicating a 10% gainer for Q-1 of this yr. 

That comes on the heels of a recent report showing that personal income spiked 10% in January. Household wealth increased nearly $2-T for the month, while spending rose just 2.4%, or $340.9-B

Those numbers, along with a burst of nearly $4-T in savings, point to an economy not only growing powerfully but also 1 that is set to continue that path through the entire yr. And real GDP will be in expansion mode into record-high territory.

Economists previously had not expected the $21.5-T US economy to regain its Instant Recession virus related losses until at least the Q-3 of this year, or later.

Have a healthy week, Keep the Faith!

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