The recovery of the US economy is likely to have peaked for the time being.
A new report from the Wall Street Journal (WSJ) notes that widespread business reopenings, more vaccinations over time, and more government-sponsored pandemic aid helped things peak this spring.
But from now on, economists have predicted that things could slow down.
According to them, the economy is likely to grow at a solid and steady pace over the next year as more jobs are created and people use the savings they received during the lockdown.
After that, they think things will likely cool down to something similar to the pre-pandemic era.
“We have entered the more moderate expansion phase,” said Ellen Zentner, US chief economist at Morgan Stanley. “We have passed the peak of growth, but that does not mean that something more sinister is going on here and that we are on the verge of collapsing.”
The WSJ surveyed economists and found that they believed the economy grew at a seasonally adjusted rate of around 9.1 percent from April to June.
This is the second fastest pace since 1983, with only last summer’s rapid recovery being beaten by the free fall of the economic impact of the pandemic, WSJ writes. And several economists have said they believe U.S. GDP has surpassed what it was before the pandemic in the second quarter.
A July 15 PYMNTS report had unemployment reports hitting a new low since the pandemic broke out.
The report found that unemployment claims fell to 360,000 for the week ending July 10, a decrease of 26,000 from the previous week and the lowest number of initial claims since March 14, 2020.
PYMNTS writes that the total number of continued weeks of use was approximately 13.9 million for the week ended June 26, a decrease of 372,000 from the previous week.
But despite the falling claims, PYMNTS found that the numbers, on average, were still higher than they were in 2019.
NEW PYMNTS DATA: MAKING LOYALTY WORK FOR SMALL BUSINESS STUDY – UK EDITION
About the course: UK consumers see local shopping as key to supporting the economy and protecting the environment, but many local high street businesses struggle to get them on the door. In a new study, Making Loyalty Work For Small Businesses, PYMNTS surveyed 1,115 UK consumers to find out how offering personalized loyalty programs can help attract new high street shoppers.