U.S. Reopening Monitor Update - November 16, 2020
The Stone Investment Partners’ U.S. Reopening Monitor was designed to provide a dashboard of high frequency and non-traditional data to gauge the pace and strength of U.S. economic activity as business restarts following the COVID-19 lockdown. The dashboard consists of three main indicator groups: healthcare, economic and financial market. This guide will provide the details behind each of the indicators within the groups.
Readings for our U.S. Reopening Monitor slipped back into neutral with new COVID cases rising again on a week-over-week (W/W) basis with Lockdown 2.0 beginning in parts of the country. Underlying high frequency economic data was little changed and mixed with mobility,consumer sentiment and dining improving while the retail sales and airline travel measures took a step back. The New York Fed’s estimate of 4Q GDP growth is currently 2.9%.
A way to visualize the data is to look at the number of factors in the monitor improving or deteriorating on a week-over-week basis.
Initial and continuing jobless claims are releases with a one- and two-week lag respectively. Data marked with an asterisk (*) denotes that the indicator was either not yet available or not published by the underlying source that week. The data marked in green indicates that the measurement improved on a week-over-week basis, while red reflects week-over-week deterioration.
The Dallas Fed's Mobility and Engagement National Index (MEI) is part our toolkit to monitor activity away from home in the U.S. The MEI uses cell phone data to gauge how much activity has been impacted by COVID with normal being 0 and the April average weekly low at -100. The MEI consists of seven different underlying measures including the percentage of mobile devices leaving home along with the distance and duration of the trip and the average time spent at home.
Though this monitor focuses on the U.S., it is worth highlighting the spike in COVID infections and additional restrictions on activity in other parts of the world.
Eurozone COVID cases continued to slow on a W/W basis for the second week but remain at a high level. Restrictions across much of Europe have impacted dining with Germany and the U.K. seeing -96% and -88% declines from baseline, respectively. Germany, France, Italy and Spain look like they finally all saw a decline in the weekly infection pace, but time will tell if this is the start of a better trend.
The increase in cases and restrictions are weighing on dining in Germany.
The U.K. pace of infections decreased but remained high.
The increase in cases and restrictions are weighing on dining in the U.K.
Japan COVID cases rose sharply with the weekly pace of infections hitting an all-time high.
Apple publishes international mobility trends that we'll be monitoring.
The Guide to the U.S. Reopening Monitor is linked here.
The PDF version of the weekly update to the U.S. Reopening Monitor is linked here.