Your Money
2021 economic growth is expected to be 5.95% now, according to The Wall Street Journal's economic survey. If it happens, that would be the fastest growth rate in about 40 years. Driving most forecasts are the trillions of dollars in pent-up savings ready to be spent.
Spending on goods is already above pre-pandemic levels, but spending on services (which often involves proximity to others) is still down. Nevertheless, with the rising number of Covid-19 vaccinations and falling business restrictions, the pickup is happening sooner than many expected.
- TSA weekly checkpoint counts are up from 600,000 in March 2020 to 8 million now.
- OpenTable restaurant reservations went from down 100% in March 2020 to now just down 50%, compared to pre-pandemic levels.
- Airbnb and VRBO reservations went from down 79% in March 2020 to currently up an incredible 61%, compared to pre-pandemic levels.
Stronger spending on services is already helping spur the labor-market recovery. Hiring accelerated in February, with most of the gains in leisure and hospitality businesses, and economists project the U.S. economy will regain millions of jobs this year.
Economy Revs Up as Americans Increase Spending on Flights, Lodging, Dining Out
by Sarah Chaney Cambon and Gwynn Guilford
|
