U.S. GDP growth likely slowed sharply in the first few months of the year, but the economy may be sturdier than it looks.
Annual inflation climbed to a new four-decade high in February, with consumer prices up 7.9% from a year ago. The increase does not reflect most of the recent jump in gasoline prices.
Wednesday on Political Rewind: We all know that the pandemic has had a profound impact on our buying habits — from how we shop for groceries to the services we use to stream new movies at home; from the sticker shock that awaits us as we shop for a new (or even used) car to the soaring price of houses.
The travel industry is only now coming back to life. But can you feel safe booking a cruise? Flights are full again, but do you want to fly on an airplane with every seat filled?
Newly vaccinated Americans are spending more freely on restaurants, travel and live entertainment. That should give a boost to pandemic-scarred service industries.
Personal income jumped by a record 21% last month, largely thanks to those $1,400 relief payments. The extra cash helped fuel a jump in spending that should continue in the months to come.
The U.S. economy grew at a rapid pace in the first three months of the year as more people got vaccinated and the federal government pumped hundreds of billions of dollars into people's pockets.
Meanwhile, the unemployment rate dipped to 6.2% last month as the winter wave of coronavirus infections eased.
Even the most mundane purchases are becoming objects of hope as we crave the routines and experiences of daily life in this period of isolation.
The Federal Reserve left interest rates near zero Wednesday and pledged it was ready to use all of its available tools to support an economic recovery that appears to be weakening.
Consumer spending rose 1.9% last month — but the rebound slowed from May and June. Unemployment benefits continued to prop up spending in July, but that may change in August.