How the economy might recover with summer kicking into gear
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We'll hear from one economist who says we could see more than 10% GDP growth in the second quarter on an annualized basis, along with a recovery for the services sector this summer. Also, public skepticism for China's new three-child policy and what it will actually mean for population growth. Plus, keep an eye out for credit card incentives as companies hope to bring balances back up. And, a labor shortage for lifeguards.
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Signs the economy will keep heating up this summer
David Kelly, chief global strategist at J.P. Morgan Asset Management, says we could see more than 10% annualized economic growth in the second quarter. The first quarter saw GDP growth at 6.4%. Kelly says we're also anticipating data on how the economy did with recovering jobs during May, and he expects it may have added over 800,000 jobs last month. Kelly said that as the summer goes on, the service industry, disproportionately hit by the pandemic recession, will regain its footing. However, spending on goods is also likely to continue, with "so much money in the hands of consumers now," as a result of Wall Street investments, government pandemic relief and more, Kelly said. Lastly, "I think we'll see higher inflation," Kelly said. "And I think there's no harm in that to some extent. I mean, it's just a sign of an economy fixing itself very fast here, but it does mean higher interest rates, and interest rates remain extraordinarily low."
There's skepticism about whether the policy change will actually address China's shrinking workforce and older population.
Banks are already stepping up marketing campaigns to try to get more consumers to use their services.
Public and private pools are facing closures and limited hours because of a lack of qualified staff for the season.
David Brancaccio Host
Nicole Childers Executive Producer
Victoria Craig Producer, BBC
Stephen Ryan Producer, BBC
Jonathan Frewin Producer, BBC
Daniel Shin Producer
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Alex Schroeder Digital producer
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