On Tuesday, US Commerce Department data had revealed that the US manufacturing activity rose as much as 1 per cent in October on an unadjusted basis, though US retail sales increased less-than-anticipated last month as a contemptuous economic landscape in the United States that lacked a much-required fiscal support for millions of laid off Americans, had been prompting people to re-think about their household expenses.
Aside from that, a pandemic resurgence across the United States and Europe stoking frets of a renewed lockdown measures coupled with a sweeping decline in household earning had been acting as a sheer headwind for US retail sales last month.
On top of that, as a vengeful departing US President Trump had shown an utter reluctancy to reach an accord over further fiscal stimulus, prospects of a rebound in economic growth which has been slowing down since a trillion-dollar stimulus bill had expired a couple of months earlier, appeared to be darkening, while analysts remained highly sceptical on probabilities of a pandemic relief bill before January 20, 2021, the day when Democratic President-elect Joe Biden would swear to take the Oval Office.
US factory activity gathers pace, but retail sales in rancour
Besides, other Government data released on Tuesday had revealed that the US manufacturing activity surged by 1 per cent last month, suggesting a modest gain in US factory activity that followed a record rise in core capital goods orders a month earlier, while retail sales rose by 0.3 per cent last month following a 1.6 per cent rise in September, marking up the smallest gain since the onset of an economic recovery that began on May.
Meanwhile, addressing to a growing outcry for further fiscal Govt. stimulus alongside policy easing from the US Federal Reserve, a chief economist at MUFG in New York, Chris Rupkey said following release of Commerce Department data, “It looks like consumer spending is increasingly turning into a headwind for this recovery from the worst economic downturn since the Great Depression.
Fed officials are saying they might have to do more and today’s data may turn that thinking into a reality. ”