Consumer spending, according to NAB’s transaction data, went up 0.5% in both retail and total spending after being broadly flat last month.
Report
December 14, 2020
US Economic Update – December 2020
Signs of slowing, but vaccine a positive
Key highlights:
- The surge in COVID-19 cases and the ongoing ramping up of containment measures in response is causing a slowdown in growth, with the risk of a contraction in quarterly GDP.
- At the same time, regulatory approval for vaccinations to commence has improved the medium-term outlook.
- The Fed will likely move to ‘qualitative outcome-based guidance’ for its asset purchases at this month’s meeting, with a chance that it also focusses its purchases more on longer dated Treasury securities.
Find out more in NAB’s US Economic Update – December 2020
