Americans are spending big on hotels and airline tickets as the economy rebounds, Goldman Sachs says
- Americans are upping their spending on
travelas the economy recovers, Goldman Sachssaid.
- The bank's analysts are bullish about the US economy, predicting a blockbuster rebound in 2021.
- Vaccines, falling COVID cases and states reopening are all boosting consumer confidence, they said.
Americans are starting to spend much more on
"Activity in some virus-sensitive services, like hotels and air transportation, has improved sharply over the last two months," the bank's analysts, led by US economist Ronnie Walker, said in a note Thursday.
The research was released after data showed new weekly jobless claims fell to a pandemic low in the week ended May 1. Figures released Friday are expected to show the US economy added around 1 million jobs in April as the recovery picked up speed.
Along with the US's rapid rollout of coronavirus
Goldman's research showed spending on hotels increased sharply in April to stand at around 77% of pre-virus levels.
Meanwhile, spending at restaurants stayed roughly flat last month after having risen sharply in March.
Goldman is highly optimistic about the US economy's recovery, predicting blockbuster growth of 7% in 2021 after gross domestic product fell 3.5% in 2020.
In a separate note on Thursday, the bank's chief economist Jan Hatzius said: "While the decline in US coronavirus cases paused over the last month, we nonetheless believe mass vaccinations and a net easing of business restrictions supported rapid gains in virus-sensitive industries."
Goldman is more optimistic than most forecasters about the US jobs situation. It expects non-farm payrolls to have risen by 1.3 million in April, compared to the consensus estimate of 1 million.
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