When it comes to YOUR MONEY, we take it a step further. That's why Mark Grywacheski appears on Good Morning Quad Cities every Monday to give us his analysis of the latest business, economic, and financial news.
Despite how it may seem to some, our economy is growing.
On Thursday, October 29th, 2020, the U.S. Department of Commerce released its 3rd quarter report and it showed that the U.S. economy grew 33.1% over the months of July, August, and September.
What's more - it's the largest quarterly gain in history... and that's not the only aspect of our economy breaking records. Here's what our Good Morning Quad Cities' Financial Expert Mark Grywacheski, Investment Advisor from the Quad Cities Investment Group, had to say about our economic recovery on Monday, November 2nd, 2020:
"Consumer spending has been very strong," he explained.
"In the 3rd quarter, consumer spending jumped 40.7%, its largest quarterly gain in history. If you look at business fixed investment - which is the big-ticket purchases by businesses of factories, buildings, equipment and technology - last year this was a component that lagged behind the rest of the broader economy. In the 3rd quarter, this grew 20.3%."
He added that consumer residential housing also gained a record 59.3% in the 3rd quarter and all signs leads to a faster recovery than first expected:
"At the height of the economic fallout back in April, many were projecting a full economic recovery would take up to 3 years, or longer, to get back to the economy's pre-pandemic level," he said.
"But with this tremendous 3rd quarter, America's economy is now down just 3.5% from year-end 2019. I think the US economy could reach a full recovery by the 2nd half of 2021."
Grywacheski is also giving us his forecast for the October jobs report, which comes out on Friday, November 6th, 2020:
"I think October's Employment Report will show a continued, solid rebound in the labor market," he explained.
"But if there's one critical component of the economy that really can't begin to falter it is the labor market. Consumer spending drives 68% of our economy's economic growth. And a strong labor market with rising wages is essential in consumers willing to spend their money to drive this economy forward."