Markets and Economy

2021 Mid-Year Economic & Market Outlook

By Brian Andrew | Johnson Financial Group • July 28, 2021

2 minute read time

Executive Summary

The U.S. economy is experiencing robust growth as we emerge from the pandemic-driven shutdown. The economic contraction last year was severe—and largely due to government and monetary support, the recovery has been both swift and strong to this point. Our focus now moves to the transition to “back to normal” and the unique challenges this cycle has created.

Economic Outlook

  • The outlook for the U.S. economy remains positive with growth expected to remain above-trend for the coming quarters.
  • The global economic recovery will be staggered, however, as regional vaccination rates have been a strong driver of the pace of economic growth. 
  • Real disposable income has sharply increased, driving strong consumer spending. 
  • The disconnect in the labor market, where the unemployment rate remains elevated despite record job openings, is likely temporary. Employment trends should improve in the fall as children return to school and the American Rescue Plan Act benefits sunset.

Listen to our Q&A

Listen in as Brian Andrew discusses the economy and markets with Ron Alberts and Jason Herried, including our outlook for the remainder of 2021.

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ABOUT THE AUTHOR

Brian Andrew

Brian Andrew

Chief Investment Officer | Johnson Financial Group

As Chief Investment Officer, Brian Andrew leads Johnson Financial Group's investment strategy to provide consistent, actionable investment solutions for our clients.

This information is for educational and illustrative purposes only and should not be used or construed as financial advice, an offer to sell, a solicitation, an offer to buy or a recommendation for any security. Opinions expressed herein are as of the date of this report and do not necessarily represent the views of Johnson Financial Group and/or its affiliates. Johnson Financial Group and/or its affiliates may issue reports or have opinions that are inconsistent with this report. Johnson Financial Group and/or its affiliates do not warrant the accuracy or completeness of information contained herein. Such information is subject to change without notice and is not intended to influence your investment decisions. Johnson Financial Group and/or its affiliates do not provide legal or tax advice to clients. You should review your particular circumstances with your independent legal and tax advisors. Whether any planned tax result is realized by you depends on the specific facts of your own situation at the time your taxes are prepared. Past performance is no guarantee of future results. All performance data, while deemed obtained from reliable sources, are not guaranteed for accuracy. Not for use as a primary basis of investment decisions. Not to be construed to meet the needs of any particular investor. Asset allocation and diversification do not assure or guarantee better performance and cannot eliminate the risk of investment losses. Certain investments, like real estate, equity investments and fixed income securities, carry a certain degree of risk and may not be suitable for all investors. An investor could lose all or a substantial amount of his or her investment. Johnson Financial Group is the parent company of Johnson Bank, Johnson Wealth Inc. and Johnson Insurance Services LLC. NOT FDIC INSURED * NO BANK GUARANTEE * MAY LOSE VALUE