The latest IMF economic forecast, durable goods orders, a slow recovery for business travel, reticence on vaccine mandates in Connecticut, and the impact of recent bank layoffs in Connecticut are among the top business news items this morning.
The International Monetary Fund is maintaining its outlook of 6 percent global growth in its latest forecast, but warning that a lopsided recovery from COVID-19 is likely as wealthier nations enjoy higher vaccination rates. The forecast for U.S. economic growth is 7 percent.
Orders for durable goods, or products designed to last at least three years, increased 0.8 percent in June. However, this gain was less than half of what economists expected as manufacturers and consumers continue to cope with supply shortages and higher costs.
The U.S. Travel Association is projecting a slow recovery for business travel, anticipating that it won’t return to 2019 levels until 2024. The slump in business travel is concerning in that it has a corresponding decline in demand for hotels, restaurants, and other services.
With COVID-19 cases increasing in Connecticut as the Delta variant spreads, Governor Ned Lamont says the state is continuing its efforts to promote vaccinations rather than exploring vaccine mandates. At the same event, however, New Haven Mayor Justin Elicker noted how some businesses in the state have imposed such mandates and urged businesses to consider them.
A Connecticut economist is warning that recent layoffs associated with the acquisition of People’s United Bank will have a wide-ranging effect on the economy of Bridgeport and Fairfield County. Donald Klepper-Smith, chief economist and director of research for DataCore Partners, estimated that the 747 layoffs at the bank will result in an additional 1,153 job losses in Connecticut.