Calm was restored in financial markets, and employment and output began growing in May, but it was a very deep hole to fill. Rapid progress over the summer gave way to slower growth over the past winter as COVID-19 infection rates surged. But in recent weeks, with steep declines in virus-related hospitalizations and deaths, the outlook has brightened.
Job creation had stalled over the winter months but picked up in February, with an increase of around 380,000 jobs. The pace of vaccinations has accelerated, COVID-related restrictions on economic activity are beginning to ease, and the latest round of stimulus is boosting consumer spending.