Americans are spending big on hotels and airline tickets as the economy rebounds, Goldman Sachs says

economy goldman sachs americans hotels
Middle East
  • Date: 07-May-2021
  • Source: Business Insider
  • Sector: Economy
  • Country: Middle East
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Americans are spending big on hotels and airline tickets as the economy rebounds, Goldman Sachs says

Americans are starting to spend much more on hotels and airline tickets, with travelling picking up around the country as states reopen and the economy rebounds, Goldman Sachs has said.

"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 vaccines, the economic rebound is helping Americans feel more confident about spending, creating a kind of virtuous cycle.

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

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