The US economy's immediate prospects appear inextricably tied to how the wave of infections and hospitalizations set off by the Delta variant of Covid-19 plays out. While it seems unlikely that the variant would become so disruptive that it undermines the recovery, there are mounting reasons to be worried that it may become a significant headwind to near-term economic growth. Consumers are increasingly nervous about the variant, sparking concerns they will turn more skittish in their spending. According to Moody's Analytics weekly business confidence index , sentiment had significantly improved this spring when vaccinations ramped up and the pandemic was steadily winding down. Businesses' assessment of current conditions has turned particularly soft in the past few weeks, with more survey respondents saying conditions are weakening than those that say they are improving.

Source: CNN August 18, 2021 13:52 UTC