Economic indicators

The resurgence of the coronavirus led to a larger than expected drop in consumer confidence.

Lindsey Piegza says politics and consumer's continued fear may make the recovery more difficult.

The Federal Reserve's Summary of Economic Projections forecasts inflation won't hit its 2% target next year, and others agree.

The Federal Reserve Bank of Philadelphia's manufacturing index fell to a seventh- month low, while jobless claims hit a three-month high.

The rising number of COVID-19 cases and the restrictions imposed to stop its spread, led to a pullback in consumer spending and has a regional service sector reeling.

While the latest read of manufacturing from the New York region suggests slowing, with COVID vaccines starting to be rolled out, the future index gained.

Increases in producer and consumer prices on an annual basis, with a 0.3-point gain compared to last year may be a signal inflation will emerge and might force the Federal Reserve to act, economists said.

With rising COVID-19 cases and increasing local restrictions, jobless claims can be expected to continue rising, economists said.

Many predicted double-digit unemployment at yearend, but that won't happen, but even after vaccines are introduced labor market questions will need to be addressed.

Strategists from both Wells Fargo Investment Institute and John Hancock have low expectations for inflation going forward.