Economic conditions in the United State showed definite signs of improvement during Q3/20, the first gain during a year dominated by impacts of the COVID-19 pandemic, according to the Citizens Business Conditions Index, which rose to 61.2 at the end of the quarter, up from 60.3 at the end of Q2/20, with some sectors, such as manufacturing, faring better than others as the U.S. economy started to get back on track.
Citizens’ proprietary measure of business activity among clients showed particular strength in the industrial and government services sectors. The fourth quarter may pose continued challenges for some sectors, however, as the number of COVID-19 cases rises in many states.
“It’s obvious to everyone that life is not back to ‘normal’ in the United States with the ongoing battle to contain COVID-19. Still, businesses are proving to be incredibly resilient,” Tony Bedikian, head of global markets at Citizens, said. “The support from the Fed has been a huge factor. The capital markets are operating well and we are seeing a lot of effective adjustments made by small and medium-sized companies as the government weighs possible additional stimulus.”
The index is derived from a number of underlying components, most of which improved during the third quarter.
The index draws from public information and proprietary corporate data to establish a view of business conditions across the United States. An index value greater than 50 indicates expansion and points to positive business activity for the next quarter.
Like this story? Begin each business day with news you need to know! Register now for FREE Daily E-News Broadcast and start YOUR day informed!