By Leonard A. Robinson
Businesses in the service sector have seen their biggest boom in over a decade, according to data from IHS Markit, a market research firm.
The service sector, which primarily consists of bars and restaurants, hotels, travel, logistics, and entertainment, has seen business sharply rise in May. An IHS Market survey of purchasing managers showed an index of service-based activity at 70.1 in May, up from 64.7 in April, according to Yahoo Finance.
According to data, the pace of growth in the U.S. service sector is the sharpest on record going back to October 2009 and growing due to new orders.
“With business optimistic about the outlook, backlog of orders rising sharply, and demand continuing to pick up both at home and in export markets the scene is set for strong economic growth to persist through the summer,” Chris Williamson, chief business economist at data firm IHS Markit, said.
As vaccination rates continue to climb, state and local governments continue to ease coronavirus restrictions, allowing many to feel comfortable returning to activities enjoyed before the pandemic, such as dining out. 25 states have vaccinated more than half of their population, CNN reported. 39% of the U.S. population have received both doses of the coronavirus vaccine as of May 24.
Since May 13, fully vaccinated persons are no longer required to wear masks both inside and outside and that testing after exposure unless they are residents of a correctional facility or homeless, per CDC guidelines.
Numerous states, such as Maryland, Rhode Island, California, and Michigan, have lifted capacity limits and mask requirements for fully vaccinated residents in response to updated CDC guidelines.
“Today is the day that so many of us have been waiting for and working toward,” said Maryland Governor Larry Hogan. “We finally do clearly see the light at the end of that tunnel. Our long, hard-fought battle against the worst global pandemic in more than a century is finally nearing an end.”
As consumers return to everyday life, travel, especially by air, has steadily increased. The Transportation Security Administration told CNN they screened 90% of the total passengers last Sunday that they did on the equivalent day in 2019.
Numerous consumers and economists alike remain concerned about rising inflation rates accompanying the economic recovery. Federal Reserve and European Central Bank officials alike have predicted that rising inflation would only be temporary.
“The inflation numbers in ‘21, which we will see rising, are of a temporary nature and rely on temporary factors,” said Christine Lagarde, European Central Bank president.
