Fiercely burning or slowly simmering? US and Europe’s contrasting economic recoveries US economy is recovering rapidly while Europe is taking longer, but what does that mean for investors? In the depths of the pandemic disruption, there was plenty of discussion about the shape of the recovery: U? V? W? K? Today, it is possible to put some tangible data around that recovery as the vaccine rolls out and economies unlock. What can be said about the type of recovery that has materialised? In the US, certainly, the recovery appears materially stronger than anyone initially anticipated. Retail sales, services and manufacturing data all point to a booming economy. The most recent set of IHS Markit US Services PMI data showed a reading of 64.7 at the start of the second quarter, up from 60.4 in March (50 indicates expansion).