Federal Reserve: Pace of U.S. economic recovery accelerates

U.S. economic recovery has accelerated to a moderate pace from late February to early April.  As consumers, buoyed by increased COVID-19 vaccinations and strong fiscal support, opened their wallets, the labour market saw more people return to work.

The labour market, which had a near-death experience due to the pandemic, saw an improvement in the pace of hiring in the manufacturing, construction, and leisure and hospitality sectors as people spent more on travel and other items.

The Federal Reserve said on Wednesday, “Reports on tourism were more upbeat, bolstered by a pickup in demand for leisure activities and travel which contacts attributed to spring break, an easing of pandemic-related restrictions, increased vaccinations, and recent stimulus payments among other factors.”

While most districts declared a moderate growth rate in their regional economies, the New York Fed said its economy “grew at a strong pace for the first time during the pandemic, with growth broad-based across industries”, despite the increase in COVID-19 cases in the region.