Economic Risk Factor Update: May 2021

My colleague Sam Millette, senior investment research analyst on Commonwealth’s Investment Management and Research team, has helped me put together this month’s Economic Risk Factor Update. Thanks for the assist, Sam!

The economic recovery continued in April, driven by improvements on the public health front and the lingering tailwind from the most recent federal stimulus bill. Consumer confidence surged during the month, highlighting increased optimism from consumers for a return to more normal economic conditions throughout the year. Service sector confidence fell slightly in April but remains near record territory. The weakest data point was employment, with April’s employment report showing a significant drop in job growth. Although it marked four consecutive months with job growth, the drop called into question how sustainable recent job growth might be.