Economic Activity Roundup
There have been a lot of economic shifts in the past couple months, especially as vaccines continue to roll out and supply begins to exceed demand. However, while there are many signs of recovery, not every economic shift is positive.
Here are the top economic shifts that the U.S. has seen recently.
- Consumer Confidence decreases. May marks the first retreat in consumer confidence since December and follows two consecutive months of sharp increases (-0.3 to 117.2). This is likely attributed to a declining short-term optimism prompted by expectations of decelerating growth and softening labor market conditions in the months ahead. (The Conference Board, 05.25.21)
- Hotel demand continues to accelerate. Accelerated vaccination deployment is driving an earlier recovery for the U.S. lodging industry, causing industry experts to adjust their forecasts. The annual occupancy for U.S. hotel this year is expected to increase to 57.2%, and average daily room rates are expected to increase 8.0% with resultant RevPAR to finish 2021 at approximately 74% of pre-pandemic levels. (PWC, 05.21)
- GDP increases. The GDP increased at an annual rate of 6.4% in the first quarter of 2021. The quarter was dominated by direct economic impact payments, expanded unemployment benefits, and Paycheck Protection Program loans – leading to the reopening of many establishments. (BEA, 05.27.21)
While the road to recovery is likely to be a long one, the journey is clearly underway. Do any of these economic shifts have you thinking about making a business change? Make sure your decisions are informed by research. Schedule a free consultation today or check out our research options here.
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