S O MUCH IS unfamiliar about the pandemic that it has never been easy to make sense of what is going on. Yet in recent days uncertainty has gone into overdrive. Stockmarkets are volatile; uncertainty about the path of inflation and labour markets is high. The fate of the economic recovery seems to hinge on the answers to a number of big questions. Will the spread of the Delta variant of the coronavirus derail the global recovery? Will underlying weaknesses be revealed as governments unwind stimulus? How enthusiastic are households and firms about spending? But the answers are unclear. And four gauges of the recovery—market prices, "high-frequency" activity indicators, hard data and economists' forecasts—are all giving mixed signals. Start with markets. America's Treasuries are a haven in uncertain times. In March investors sold them off as they took fright at rising inflation, pushing the ten-year Treasury yield up to 1.7%. But it has slowly slipped back since, as doubts about the continued strength of the economic recovery have taken hold. The growth scare seemed to intensify on July 19th, when the ten-year yield dipped to 1.19%. The S & P 500, America's main stock index, fell by 1.6%, with smaller… Read full this story
- Style Anatomy: Schehrezade Rahim
- Why children are scared of Santa - and why it's actually a good thing
- Award-winning Scots haggis firm hit with Christmas “killer” botulism scare as products recalled
- Olympic medallist's brain tumour scare
- Sanofi pins hopes on 2018 for growth after recent takeover deals
- Germany sees biggest consumer spending growth in 24 years
- Stocks stage comeback with record inflows despite wilting returns
- Bakutel: Azerbaijan wants to become an ICT hub
- Jeremy McConnell's plastic surgery in full: How shamed Irish model transformed his look after assault conviction
- Wolves Fans' Verdict v Brentford: "It's hard to describe how good we are"
The anatomy of a growth scare have 300 words, post on www.economist.com at July 24, 2021. This is cached page on The World Articles. If you want remove this page, please contact us.