April 30, 2021 • Articles
By Chair Cecilia Rouse
The three data releases (Gross Domestic Product, Personal Income, and the Employment Cost Index) from the last two days show how recent policies enacted to support households through the pandemic are helping to boost incomes and spending, providing a lift to the current economic expansion. However, they also are a reminder that there is still more work to be done before the economy and households fully recover.
1.
The GDP report showed a strong pace of growth.
Yet it also serves as a reminder that the work of the recovery is not yet over: the U.S. economy is still about one percent below where it was pre-pandemic and more than 3 percent below its pre-pandemic trend.
Date
03/05/2021
Last week, the Bureau of Economic Analysis confirmed that the U.S. economy has now expanded for three consecutive quarters, after the pandemic caused GDP to plummet 19.2 percent at an annual rate in the first half of 2020. In the first quarter of 2021, economic growth was bolstered by two additional rounds of Economic Impact Payments (EIPs), extensive vaccination of the population, the easing of COVID-19 restrictions, and continuing progress reopening the economy. Indeed, significant progress has been made in revitalizing many sectors, and the economy has proven its resilience in the face of multiple headwinds. Nonetheless, a full recovery continues to depend upon vaccinating enough of the population for effective herd immunity and ensuring individuals and businesses can thrive, despite the challenges posed by the global pandemic.
Daily Times
May 2, 2021
US consumer spending rebounded in March amid a surge in income as households received additional COVID-19 pandemic relief money from the government, building a strong foundation for a further acceleration in consumption in the second quarter.
Other data on Friday showed labor costs jumped by the most in 14 years in the first quarter, driven by a pick-up in wage growth as companies competed for workers to boost production. The White House’s massive $1.9 trillion fiscal stimulus and rapidly improving public health are unleashing pent-up demand.
“While we aren’t completely out of the woods yet, today’s report shows the beginning of an economic rebound,” said Brendan Coughlin, head of consumer banking at Citizens in Boston. “Assuming no setback in the continued rollout of the vaccines, US consumers are well-positioned in the second half of the year to stimulate strong economic growth across the country.” Consumer spending, which accounts for more
U.S. consumer spending rebounded in March amid a surge in income as households received additional COVID-19 pandemic relief money from the government, building a strong foundation for a further acceleration in consumption in the second quarter. Other data Friday showed labor costs jumped by the most in 14 years in the first quarter, driven by…
Christopher Rugaber
Workers install conduit that will hold Verizon s fiber-optic cable, Wednesday, April 21, 2021 in New York. Wages and benefits grew quickly for U.S. workers in the first three months of the year, a sign that businesses are starting to offer higher pay to fill newly-opened jobs. U.S. workersâ total compensation rose 0.9% in the January-March quarter, the largest gain in more than 13 years, the Labor Department said Friday, April 30. (AP Photo/Mark Lennihan) April 30, 2021 - 6:42 AM
WASHINGTON - Wages and benefits grew quickly for U.S. workers in the first three months of the year, a sign that businesses are starting to offer higher pay to fill newly-opened jobs.