EDITOR NOTE: If you’re in the habit of watching television, you’ve probably seen the sorrowful ad of older family members who talk about why the holiday season is so special to them, namely getting together with family. The main message point comes when they urge that staying home and not visiting is the best thing you can do for your older family members. A sad point, but it reflects not only our familial priorities but also the potential direction of the global economy. With business and travel restrictions taking place, in some places more rigid than in others, this lack of mobility will put a damper on a holiday season booming with sales. In short, we’re once again hitting our economic COVID lows. And whether this affects market sentiment in the coming quarters or not, it certainly will affect the broader economy, as many Americans are already feeling it.
Activity in several of the world’s largest advanced economies plummeted over the Christmas holidays, according to Bloomberg Economics gauges that integrate data such as mobility, energy consumption and public transport usage. An increase in Covid-19 infections and stricter containment measures in November and early December, exacerbated the slide. A decline in mobility and other alternative data indicators often occurs over the Christmas and New Year holidays, but in some countries, such as Germany and Italy, very strict containment measures imposed shortly before Christmas added to the weakness.
Originally posted on Bloomberg | Quint