The economy remains stagnant

Intelligent Economics > Blog > The economy remains stagnant

The Economic Activity Index improved by 3.3% in August, compared to August 2020. With an increase to 119.4, August is the 6th month with an increase since the start of the pandemic. Starting March 2020, the EAI had been decreasing on an m-o-m basis but in March 2021 these decreases halted. On an m-o-m basis, the index increased by 0.2%. Through the period from January to August, the EAI improved by 2.7% annually. However, August was the month with the smallest increase in the index.

Certain sectors of the payroll have yet to recover from the job losses caused by the pandemic. Worker scarcity may present difficulties for sectors most affected by the pandemic, like entertainment and hospitality. Manufacturing shortages and port congestions may also have adverse effects on the economy in the next months. Other factors like gasoline and electric energy inflation also create difficulties for economic recovery.

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