The US economy has kept growing in the face of the rapid spread of omicron. The US leading index rose a solid 0.8% in December, signaling steady growth even as the record spread of the omicron virus nibbled at the edges of the economy. Economists polled by The Wall Street Journal had forecast a 0.8% increase.
The LEI is a weighted gauge of 10 indicators designed to signal business-cycle peaks and valleys. A measure of current economic conditions rose 0.2% in December, a bit faster than in the prior month, the Conference Board said Friday. The privately-run company is the publisher of the report.
As for the big picture, the US economy suffered a blow from omicron at the end of 2021 and in early 2022. Yet the economy is likely to rebound quickly as caseloads peak nationally and start to sink in the areas that were hit hard early on.
US growth is unlikely to be as fast this year, however, with the Federal Reserve preparing to raise interest rates and Washington no longer providing gobs of stimulus. Looking ahead: For the first quarter, headwinds from the omicron variant, labour shortages, and inflationary pressures as well as the Federal Reserve\u2019s expected interest rate hikes may moderate economic growth.
Still, for all of 2022, US economy is expected to expand by a robust 3.5%; above the pre-pandemic trend growth. As for the market\u2019s reaction, the Dow Jones Industrial Average DJIA, +0.25% and S&P 500 SPX, -0.06% fell again in Friday\u2019s trades. Stocks have tumbled in the past week and interest rates have risen in anticipation that the Fed will hike interest rates as soon as March.<\/p>\n","protected":false},"excerpt":{"rendered":"
The US economy has kept growing in the face of the rapid spread of omicron. The US leading index rose a solid 0.8% in December, signaling steady growth even as the record spread of the omicron virus nibbled at the edges of the economy. Economists polled by The Wall Street Journal had forecast a 0.8% …<\/p>\n","protected":false},"author":13,"featured_media":54287,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[37,39,36],"tags":[7192,7903,7976,6885,8143,8601,8166,6858],"class_list":["post-58796","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-forex-markets","category-global-stock-markets","category-market-updates","tag-dow","tag-economic-growth","tag-equities","tag-fed","tag-interest-rate-hikes","tag-lei-data","tag-omicron","tag-us-economy"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/58796","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=58796"}],"version-history":[{"count":2,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/58796\/revisions"}],"predecessor-version":[{"id":58800,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/58796\/revisions\/58800"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/54287"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=58796"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=58796"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=58796"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}