Watch Yellen warn Congress: This could have 'catastrophic economic consequences' Goldman Sachs ( GS ) slashed its forecast for US economic activity in the second half of the year, pointing to sluggish consumer spending on services as well as the threats posed by the Covid-19 Delta variant . During the pandemic and the start of the recovery, Americans spent big on goods: Used car prices soared , as did prices for furniture and other household items, in response to surging demand and shortages of materials. But in normal times, consumers spend much more on services like concerts or dining out —and the big spending on goods that has defined the pandemic recovery so far isn't sustainable to keep the US economy growing. That's why rotation is necessary in how people spend their cash, said Goldman Sachs economist Ronnie Walker on Monday in a note to clients. But fears around the Delta variant are keeping services spending down. "The services categories where spending remains depressed are generally either associated with high virus risk, such as live entertainment events, or connected to office-based work, such as ground transportation or dry cleaners," Walker wrote. In response, Goldman slashed its gross domestic product growth forecast, the widest measure of economic activity, by one percentage point in both the third and fourth quarters. Between July and September, the Wall Street bank expected 8.5% annualized growth, before dropping to 5% in the last three months of the year. For the full year, Goldman predicts 6.6% GDP growth. From 2022 on, the pace of expansion will slow further, trending back toward the 1.5% to 2% annualized growth what the nation typically saw before the pandemic . Even though roughly half of Americans are fully vaccinated, cases are rising. In 48 states, the rate of new Covid-19 cases in the past week jumped by at least 10% compared to the previous week, according to data from Johns Hopkins University. In 34 of those states, the rate of new cases increased by more than 50% . The rise of infections through the variant is coming at an inopportune time: The economy is still not back to normal , and the resurgence of infections could keep people from fully participating in the economy. "While most consumers appear to be comfortable returning to high-contact services, some are still hesitant," said Walker. "They are likely to remain cautious for now as the spread of the Delta variant keeps Covid fears alive, delaying a full recovery." At the same time, Goldman's economists believe the Delta variant's impact on the economy will be somewhat limited: "Appetite for new government-mandated restrictions appears low; early state-level evidence shows little impact on consumer spending so far; and the virus situation already appears to be improving in the United Kingdom and other countries where it spread earliest," Walker wrote.https://www.cnn.com/2021/07/26/economy/goldman-sachs-services-economy-delta/index.html
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"We're helping reunite people living in the U.S. and European countries with their family and friends in the UK,'' Transport Secretary Grant Shapps had announced on Twitter . "We’ve been waiting for this moment for quite a long time,'' said Susan Handfield, who met her granddaughter for the first time at Heathrow on find this Monday. Baby Charlotta, who was born in February, arrived with her parents from Berlin. Planning an international trip?: Get ready to show a negative coronavirus test to board your flight home The lifting of quarantine requirements came just a week after the Centers for Disease Control and Prevention and the U.S. State Department recommended against traveling to the United Kingdom due to rising COVD-19 case counts. U.S. citizens have been allowed to travel to the U.K. during the pandemic but faced travel restrictions, including coronavirus testing requirements and quarantine. Under the relaxed rules for vaccinated Americans and Europeans, visitors to England,Northern Ireland, Wales and Scotland will still be subject to COVID testing requirements. Travelers must have received their final vaccine dose at least 14 whole days before arriving in the U.K. Thecountries require a pre-departure test as well as a test upon arrival. The latter must be taken by day two of the trip. Vaccinated Americans must also provide proof of U.S. residency and fill out a passenger locator form. Travelers returning to the United States must also still show a negative coronavirus test or recent recovery from COVID-19 to board U.S.-bound international flights under a CDC requirement in place since January . The requirement applies to all U.S.-bound travelers on international flights, even those who are fully vaccinated. But the U.S. has no plans to reciprocate by lifting travel restrictions anytime soon given the rise of the delta variant, according to the White House. The United States' current travel restrictions – which deny entry for people from the European Schengen area, United Kingdom and other countries – will remain in place. “Given where we are today … with the delta variant, we will maintain existing travel restrictions at this point for a few reasons," White House press secretary Jen Psaki said at a press briefing last Monday.https://www.usatoday.com/story/travel/news/2021/07/28/uk-travel-restrictions-quarantine-lifted-covid-vaccinated-americans/5399072001/