The pandemic has devastated economies around the world, and America is no exception. However, with relaxed lockdown rules and permission to operate, some industries have started functioning, albeit abiding by social distancing protocols. States that successfully reopen with minimal to no change in case numbers suggest local recovery, but there is still uncertainty as case numbers around the country continue to increase. With businesses beginning to start up normal activities again, there have been upticks in everything from hotel reservations to home buying. However, the aviation industry has seen little to no improvement as people refrain from travelling by air. Here is a quick peek of some of the sectors to give you a clear view of the US economy’s current economic situation in the wake of COVID-19.
The sector-wise unfolding by Brian C. Jensen
The local restaurants experienced a steady rise in bookings as different states eased indoor dining restrictions. Although social distancing is still required by most businesses and state governments, which can have a direct impact on the usage of the available space, the restaurant owners have found an innovative way to make up for this. They are using outdoor areas with approval to extend their sitting capacity. In cities like San Francisco, restaurants can use streets and sidewalks to provide their services.
The ease of travel restrictions imposed due to the pandemic is also showing moderate improvement. New York City, South Carolina, Texas, among other states, have all seen a slight increase in tourism, a positive for those local economies.
Entrepreneurs like Brian C. Jensen mention that there is a nearly 80% decline in passenger travel compared to the past year. However, this number is slowly decreasing as people begin to travel again. Still, experts believe that fear of contracting the novel coronavirus is a major factor in discouraging travelers from taking airlines to get to their destination, and hence, the airline businesses may yet struggle for a while to come.
Real estate investment
Recent surveys show there is positive sentiment among people about the housing market. There have also been a higher rate of mortgage applications for single-family home purchases. It reflects an almost 13% increase from the last year, even with the pandemic. Investors and entrepreneurs uphold that increasing home-buying activities can be a potential indicator of faster recovery as the reopening continues.
Data derived from navigation apps reveal that requests for driving navigation have improved to almost half of their pre-pandemic levels. This boost is attributable to the reopening of the businesses where people are resuming work and leisure activities. The requests for walking directions were lower, which could be the result of people’s preference for public or private transport.
After looking at these sectors and how they are doing, you can form an overall opinion about the country’s current economic condition. Right now, it is too early to predict anything about how slow or fast the economy can recover.