The Colliers Index has been downgraded to a 3 from a 6 in March. This score reflects the continued effects of COVID-19 upon economic conditions in the United States. Atlanta is no exception to the negative circumstances; however, its industry diversity and significance as a regional distribution hub will help the area recover quicker than most other major metros.
Current Market Conditions
Where to even begin? The economy has basically shut down and remains in flux. A recession is likely, if not already here. And the March jobs report reflected the beginning of the impact of COVID-19 to the nation's employment situation. The indicators remain discouraging.
Metro Atlanta is beginning to see a hit to its economy. The restaurant and hospitality sectors have been crushed. Job number from the latest data (February) are already showing losses. If not for positive Q1 office and industrial data, the index would be lower.
Stocks are in bear market territory, hitting levels not seen since 2017. Signs of revival have sprung up as of late, but the market will remain volatile until a promising end to the pandemic.
As anticipated, oil has dipped into the $20s and nations are running out of storage options as surpluses increase. OPEC is expected to make major cuts to production levels in the coming months.
The Fed slashed its benchmark interest rate to zero in March, and plans to keep it at this level until the economy has 'weathered' the COVID-19 pandemic. Quantitative easing of $700B is expected to be the first installment of more moves later to help keep markets calm.
Forecasted GDP from multiple sources show a bloodbath. Q1 is anticipated to be positive given productivity in the first 2 months of the year; however Q2 projections of -34.0% are staggering.