March Industry Indicators: U.S. Economic Outlook Improves Significantly as Vaccinations Accelerate

By Kyle Cheng

Economic activity has improved significantly over the last month. The rate of vaccinations is accelerating and the number of COVID-19 cases, while still high, is improving. Additionally, the COVID relief bill likely will push economic growth above forecasts for the back half of 2021 and through much of 2022. All of this paints a much better economic outlook for the economy as we move past the pandemic.

While the outlook is optimistic, there are some potential risks. Inflation is a possibility, and prices in some segments of the economy are already moving higher. Supply chains are constrained because of the disruption from the virus. Additionally, over the past year, consumers spent more money on goods as many services were closed. Consumers stayed at home and bought items such as electronics and auto parts. As the country opens up and restrictions lift, consumers will likely divert more money to things they haven’t been able to do, potentially slowing growth for certain segments of the economy.

For more information, download the new March “SEMA Industry Indicators” report today at www.sema.org/research.

For a more in-depth look at the path of recovery for our industry and the economy, as well as potential scenarios for the next few years, check out the “SEMA Future Trends – January 2021” report at www.sema.org/research.