U.S. economy to slow in first-quarter but reach pre-COVID-19 levels in a year: Reuters poll - The Journal Pioneer | Canada News Media
Connect with us

U.S. economy to slow in first-quarter but reach pre-COVID-19 levels in a year: Reuters poll – The Journal Pioneer

Published

 on


By Shrutee Sarkar

BENGALURU (Reuters) – U.S. economic growth will lose momentum this quarter and next but expand faster than previously thought after that, according to a Reuters poll of economists, a firm majority of whom now expect the economy to reach pre-COVID-19 levels within a year.

While the near-term economic outlook has dimmed again as the U.S. remains the country worst-hit by the pandemic and on uncertainty about a fresh fiscal package, Wall Street stocks have reached record highs on positive vaccine news.

The growth outlook for the current and next quarters was lowered in the Nov. 30-Dec. 8 poll. A few respondents predicted a double-dip, expecting the economy to contract again next quarter.

“We expect the rising threat of COVID-19 to dampen growth through the first months of 2021, followed by further fiscal support from the prospective new administration in reaction to the rise in hospitalizations,” noted Ellen Zentner, chief U.S. economist at Morgan Stanley.

“Downside risks are dominated by COVID-19, and particularly if broader-than-expected shutdowns over the winter and a delayed vaccine come in the absence of further fiscal stimulus. In this scenario, a more drawn-out recovery would lead to longer stints of unemployment and greater permanent job loss.”

But in response to an additional question, nearly two-thirds of economists, or 43 of 69, said U.S. GDP would reach pre-COVID-19 levels within a year. Twenty-one said within two years and five said two or more years.

That is a turnaround from the August poll findings, where none of the economists said “less than a year”, with nearly 60% predicting the economy would take two or more years to reach pre-pandemic levels.

The wider poll showed GDP for Q3 is expected to remain unrevised at a record 33.1% when the final data is issued later this month, after contracting at an annualized 31.4% pace in Q2, its sharpest decline in at least 73 years. It was expected to grow 4.0% this quarter, compared to 3.7% predicted previously.

For the first quarter the consensus was lowered to 2.5% growth from 3.0% last month, with nearly 11% of respondents predicting the economy would contract in Q1.

It was expected to expand 3.8%, 3.9% and 3.4% in the following quarters of 2021, compared to 3.5%, 3.5% and 3.2% predicted, respectively, last month.

The world’s largest economy was forecast to contract 3.6% this year then grow 3.9% next year and 3.1% in 2022.

Three-quarters of economists, or 44 of 58, who responded to a separate question said the outlook for the strength of the U.S. economic recovery had either stayed about the same or improved from last month.

“Near term (1-3 months) has worsened on the back of rising COVID-19 cases, which could lead to more containment measures being introduced at the expense of economic activity,” said James Knightley, chief international economist at ING.

“However, political risks have subsided and vaccine roll-out news offer clear positives on the medium (3-6 months) term outlook.”

Still, only 21% of 43 economists in response to a separate question expected the Federal Reserve to announce more stimulus at its December meeting.

Thirteen economists said the Fed would change its policy next in 2021, six said in 2022 and 15 said 2023.

“If economic data deteriorate and there is no fiscal policy response in sight we may see the Federal Open Market Committee use its asset purchase program to provide additional monetary stimulus,” said Philip Marey, senior U.S. strategist at Rabobank.

“The FOMC could decide to indicate a longer horizon for asset purchases through forward guidance. However, if the Committee thinks the situation is more urgent, it could step up the pace of asset purchases or shift the composition to longer maturities.”

(For other stories from the Reuters global long-term economic outlook polls package:)

(Reporting by Shrutee Sarkar; Polling by Manjul Paul and Nagamani Lingappa; Editing by Jonathan Cable and Chizu Nomiyama)

Let’s block ads! (Why?)



Source link

Continue Reading

News

Teen smoking and other tobacco use drop to lowest level in 25 years, CDC reports

Published

 on

 

NEW YORK (AP) — Teen smoking hit an all-time low in the U.S. this year, part of a big drop in the youth use of tobacco overall, the government reported Thursday.

There was a 20% drop in the estimated number of middle and high school students who recently used at least one tobacco product, including cigarettes, electronic cigarettes, nicotine pouches and hookahs. The number went from 2.8 million last year to 2.25 million this year — the lowest since the Centers for Disease Control and Prevention’s key survey began in 1999.

“Reaching a 25-year low for youth tobacco product use is an extraordinary milestone for public health,” said Deirdre Lawrence Kittner, director of CDC’s Office on Smoking and Health, in a statement. However, “our mission is far from complete.”

A previously reported drop in vaping largely explains the overall decline in tobacco use from 10% to about 8% of students, health officials said.

The youth e-cigarette rate fell to under 6% this year, down from 7.7% last year — the lowest at any point in the last decade. E-cigarettes are the most commonly used tobacco products among teens, followed by nicotine pouches.

Use of other products has been dropping, too.

Twenty-five years ago, nearly 30% of high school students smoked. This year, it was just 1.7%, down from the 1.9%. That one-year decline is so small it is not considered statistically significant, but marks the lowest since the survey began 25 years ago. The middle school rate also is at its lowest mark.

Recent use of hookahs also dropped, from 1.1% to 0.7%.

The results come from an annual CDC survey, which included nearly 30,000 middle and high school students at 283 schools. The response rate this year was about 33%.

Officials attribute the declines to a number of measures, ranging from price increases and public health education campaigns to age restrictions and more aggressive enforcement against retailers and manufacturers selling products to kids.

Among high school students, use of any tobacco product dropped to 10%, from nearly 13% and e-cigarette use dipped under 8%, from 10%. But there was no change reported for middle school students, who less commonly vape or smoke or use other products,

Current use of tobacco fell among girls and Hispanic students, but rose among American Indian or Alaska Native students. And current use of nicotine pouches increased among white kids.

___

The Associated Press Health and Science Department receives support from the Howard Hughes Medical Institute’s Science and Educational Media Group. The AP is solely responsible for all content.

The Canadian Press. All rights reserved.

Source link

Continue Reading

Health

Whooping cough is at a decade-high level in US

Published

 on

 

MILWAUKEE (AP) — Whooping cough is at its highest level in a decade for this time of year, U.S. health officials reported Thursday.

There have been 18,506 cases of whooping cough reported so far, the Centers for Disease Control and Prevention said. That’s the most at this point in the year since 2014, when cases topped 21,800.

The increase is not unexpected — whooping cough peaks every three to five years, health experts said. And the numbers indicate a return to levels before the coronavirus pandemic, when whooping cough and other contagious illnesses plummeted.

Still, the tally has some state health officials concerned, including those in Wisconsin, where there have been about 1,000 cases so far this year, compared to a total of 51 last year.

Nationwide, CDC has reported that kindergarten vaccination rates dipped last year and vaccine exemptions are at an all-time high. Thursday, it released state figures, showing that about 86% of kindergartners in Wisconsin got the whooping cough vaccine, compared to more than 92% nationally.

Whooping cough, also called pertussis, usually starts out like a cold, with a runny nose and other common symptoms, before turning into a prolonged cough. It is treated with antibiotics. Whooping cough used to be very common until a vaccine was introduced in the 1950s, which is now part of routine childhood vaccinations. It is in a shot along with tetanus and diphtheria vaccines. The combo shot is recommended for adults every 10 years.

“They used to call it the 100-day cough because it literally lasts for 100 days,” said Joyce Knestrick, a family nurse practitioner in Wheeling, West Virginia.

Whooping cough is usually seen mostly in infants and young children, who can develop serious complications. That’s why the vaccine is recommended during pregnancy, to pass along protection to the newborn, and for those who spend a lot of time with infants.

But public health workers say outbreaks this year are hitting older kids and teens. In Pennsylvania, most outbreaks have been in middle school, high school and college settings, an official said. Nearly all the cases in Douglas County, Nebraska, are schoolkids and teens, said Justin Frederick, deputy director of the health department.

That includes his own teenage daughter.

“It’s a horrible disease. She still wakes up — after being treated with her antibiotics — in a panic because she’s coughing so much she can’t breathe,” he said.

It’s important to get tested and treated with antibiotics early, said Dr. Kris Bryant, who specializes in pediatric infectious diseases at Norton Children’s in Louisville, Kentucky. People exposed to the bacteria can also take antibiotics to stop the spread.

“Pertussis is worth preventing,” Bryant said. “The good news is that we have safe and effective vaccines.”

___

AP data journalist Kasturi Pananjady contributed to this report.

___

The Associated Press Health and Science Department receives support from the Robert Wood Johnson Foundation. The AP is solely responsible for all content.

The Canadian Press. All rights reserved.

Source link

Continue Reading

News

Alabama man arrested in SEC social media account hack that led the price of bitcoin to spike

Published

 on

 

WASHINGTON (AP) — An Alabama man was arrested Thursday for his alleged role in the January hack of a U.S. Securities and Exchange Commission social media account that led the price of bitcoin to spike, the Justice Department said.

Eric Council Jr., 25, of Athens, is accused of helping to break into the SEC’s account on X, formerly known as Twitter, allowing the hackers to prematurely announce the approval of long-awaited bitcoin exchange-traded funds.

The price of bitcoin briefly spiked more than $1,000 after the post claimed “The SEC grants approval for #Bitcoin ETFs for listing on all registered national securities exchanges.”

But soon after the initial post appeared, SEC Chairman Gary Gensler said on his personal account that the SEC’s account was compromised. “The SEC has not approved the listing and trading of spot bitcoin exchange-traded products,” Gensler wrote, calling the post unauthorized without providing further explanation.

Authorities say Council carried out what’s known as a “SIM swap,” using a fake ID to impersonate someone with access to the SEC’s X account and convince a cellphone store to give him a SIM card linked to the person’s phone. Council was able to take over the person’s cellphone number and get access codes to the SEC’s X account, which he shared with others who broke into the account and sent the post, the Justice Department says.

Prosecutors say after Council returned the iPhone he used for the SIM swap, his online searches included: “What are the signs that you are under investigation by law enforcement or the FBI even if you have not been contacted by them.”

An email seeking comment was sent Thursday to an attorney for Council, who is charged in Washington’s federal court with conspiracy to commit aggravated identity theft and access device fraud.

The price of bitcoin swung from about $46,730 to just below $48,000 after the unauthorized post hit on Jan. 9 and then dropped to around $45,200 after the SEC’s denial. The SEC officially approved the first exchange-traded funds that hold bitcoin the following day.

The Canadian Press. All rights reserved.

Source link

Continue Reading

Trending

Exit mobile version