He was expected. A year after being marked by Govt-19, a mini economic boom began in the United States. In Mama Sam’s country, almost a quarter of the population is now vaccinated, and prices have begun to rise. For good reason, Americans consumed a lot in March: clothing, sporting goods, music, books, cars, but also food and beverages.
Retail sales rose 9.8% since February. “Consumer boom has begun,” Oxford economists Gregory Taco and Lydia Bassore commented in a note.
Very high savings
Americans are now reluctant to go shopping or eat out, and more and more states across the country have relaxed their restrictions. After a year without holidays or bars, their savings soared all the time, and government checks for more homes increased their bills even further.
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“With new trigger checks on hand, consumers are using the warmer weather and increasing vaccines in car dealerships, malls, restaurants and home decor and fancy stores,” the two analysts said.
The number of unemployed on the decline
As a result, unemployment claims fell to their lowest level since the beginning of the crisis in early April.
Last week, 576,000 people re-applied for the allowance, up from 769,000 the previous week, according to data released by the Department of Labor on Thursday (April 15). However, before the eruption it was twice as much as usual.
The total number of beneficiaries benefiting from all programs together, from job or salary loss assistance, fell to 16.9 million at the end of March. The number of unemployed is expected to continue to decline in the coming months as the economy continues to recover.
New York and Philadelphia are at their highest
For example, in the New York region, hiring intentions in the manufacturing sector soared to an all-time high in April, with nearly half of the companies surveyed expecting to grow their workforce in the coming months, according to central bank data released Thursday.
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Production activity in the region also rose sharply in April, reaching its highest level in several years, according to a local branch of the central bank. Tito in the Philadelphia area, which has reached a 50-year high, the central bank said Thursday.
“Activity in these two regions continues to grow at a rapid pace. Production is approaching its pre-epidemic levels, driven by strong demand for goods, despite the effects of disruptions in the supply chain. Supply,” the economist said in a note to HFE.
Globally, suppliers are struggling to meet strong demand, which is causing congestion in factories and ports. This increases the price of parts and raw materials, and that increase begins to disappoint consumers.
Thus, in the New York region, prices paid by manufacturers to their suppliers have been at an all-time high since 2008, while delivery times are the longest recorded. According to the CBI index released on Tuesday, inflation was seen in March, rising to 2.6% for the year, its fastest pace since the fall of 2018. However the increase should only be temporary.