What does the record shrink of GDP mean for Machine Vision
The US GDP decreased at an annual rate of 32.9 percent in the second quarter of 2020. In this post, we are going to break down what this news means for the Machine Vision Market.
What does this number mean in context?
The Bureau of Economic Analysis calculates the latest data from developments during the COVID-19 pandemic to an annual figure. So, the value shows how the US economy would develop if the year continued as it had in previous months.
To put this in a European frame, looking only at the second quarter, not extrapolated over the year, the GDP decline in the USA corresponds to a decline of 9.5 percent, which is about similar to the European economies with are forecasted decline of 12.5 percent in the Euro Area for the second quarter of 2020.
What can we expect for the second half of 2020?
Analysts and experts do not expect a back to ‘normal’ in the second half of the year, as infection numbers are still rising, and consumers are still cautious with spending.
A consumer and service-oriented economy like in the United States naturally suffers particularly from the closure of shops and restaurants. The still-high jobless claims intensify this problem.
What does this mean for Machine Vision?
The money is still in the market. The engineering sector is still skeptical, but due to the low-interest rates combined with a drop in the consumer markets, B2B investments should take back some grounds, especially for mid- and long term investments. As developments are fast and predictions are only very short-term, OEMs need to stay agile and able to adapt.