The Decline of Social Distancing and its Economic Impact
The Dallas Federal Reserve partnered with data providers and created its Dallas Fed National Mobility and Engagement (ME) Index. The ME Index incorporates seven different variables and is measured daily.
If the Mobility and Engagement Index continues to fall, we could see economic activity continue to pick up, however if the ME Index retreats or remains stagnate in negative territory, that could be a sign individuals still do not feel safe and economic activity could suffer.
Based on the Dallas Fed Mobility and Engagement Index data, we are observing distinct differences in the ranges and pace of recovery of mobility in various areas of the country. The New York City MSA for example still has one of the lowest mobility levels, while the San Francisco MSA reading is moving closer to the pre-COVID shutdown levels.