The economy is bouncing back, unevenly
The steep economic downturn caused by the coronavirus pandemic hit hard and fast. The recovery is proving to be a lot more herky jerky, but signs of progress abound.
Massachusetts vaccination rates are among the highest in the nation, pandemic restrictions are waning, and the $1.9-trillion federal stimulus package approved in March is beginning to trickle its way into the economy.
A sense of optimism is spreading across the state, and the Central Massachusetts business community is no exception.
Signs of spring have merged with a number of awakening sectors, including the return of commercial flights to the Worcester Regional Airport. Travel rose over the Memorial Day weekend, the Worcester Red Sox now can fill Polar Park with fans, and the Hanover Theatre and the DCU Center are bringing back live events.
Yet, while the economy is moving in a positive direction, everything isn’t universally great.
Real estate has remained strong throughout the pandemic, but prices have reached astronomical levels with record low inventory. The price of steel and lumber are causing building prices to rise by double-digit percentages, and all of a sudden gasoline prices have hit their highest level in seven years. Ouch. Right when so many good things are happening with the recovery the inflation monster is rearing its ugly head.
Companies looking to take advantage of the rising economy, including manufacturers and restaurants, are having a hard time finding enough staff to meet their needs.
The good news is even this bad news is a sign of our economy heating up.
Right now it's hard to tell how much pandemic-related supply chain disruption is affecting the price spikes, or if those shortages will persist. Economists are predicting despite the real dangers, price volatility will stabilize and we are not entering a new stage of inflation. Let's hope not.
The pandemic downturn caused countless medium- and long-term challenges in the economy, not the least of which is a disproportionate number of women were forced to leave the workforce.
But sentiment counts, and area business people are feeling optimistic about what lies ahead.
Most signs indicate we’re beginning to operate from a position of strength to deal with the many challenges and opportunities lying ahead. The return of positive economic momentum is a welcome sign.
WBJ Web Partners
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