Atlanta’s economy and the Colliers Index fell back into the red for the month of November, moving to 3 for the first time in four months.
As much as we would have liked to keep the index in the yellow zone, the ongoing COVID-19 pandemic is putting serious strains on an economy trying to recover.
The latest surge in coronavirus infections, including a record 184,000 cases in one day, threatens to push the country into another period of economic shutdowns which would be very detrimental to the progress being made.
Current Economic Conditions
In spite of the bad news, there are some positives to take away from the month of November. First, the election season has come to a close... well, almost. It is likely the country will have a new President come January; however, the fate of U.S. Senate control is up for grabs with runoff races TBD in our very own state of Georgia.
Second, the nation's GDP for Q3 came in at a record 33.1%, beating expectations and signaling the positive affects of both reopening the economy and stimulus.
Lastly, there is positive news regarding multiple COVID-19 vaccines which signals a possible return to normal in the year to come.
Jobs rose by a better-than-expected 638,000 in the month of October; the sixth consecutive month of gains for the country. As a result, the U.S. unemployment rate is now down to 6.9%.
Weekly jobless claims continue to average around 740,000 as of the latest report.
U.S. GDP hit a record 33.1% last quarter, recovering from the -31.4% record low in Q2. Projections for Q4 show GDP at 3.5% with some estimates pointing lower due to the lack of a new stimulus plan.
For the most part, Atlanta's economy continues to strengthen; however, further pressures on the city's hospitality and air travel industries could be unfavorable without more support.