There are other reasons to think the recovery could decelerate. On the other hand, she said, “if growth is really dampened (by omicron), that should take the heat off inflation.’’ Whether you want to stay close to home or head north, here's everything you need to know about skiing or snowboarding in the Northeast and New York this season. “So that could exacerbate the short-term trend and make inflation worse.’’ “If everybody is freaked out that going to a bar or restaurant is going to land them in a hospital, they may continue to buy goods,’’ said Greene, the Kroll Institute economist. It could also increase consumers’ already intensified demand for goods, which would magnify the supply shortages. One fear now is that omicron infections will further disrupt manufacturing and shipping, worsen the supply chain backlogs and keep inflation simmering. holiday sales were on track for a record-breaking year. And it sparked optimism for the 2021 holiday season: In an updated forecast shortly before omicron emerged as a serious threat, the National Retail Federation said U.S. Bars, restaurants and hotels were particularly devastated.īut record-high infusions of government spending and, eventually, the rollout of vaccines triggered an unexpectedly powerful recovery, giving many households the confidence and financial wherewithal to resume shopping. More than 22 million people in the United States alone lost jobs. Economies all but shut down when the virus struck early last year. Since the pandemic hit nearly two years ago, it has imposed one economic challenge after another. The government bowed to pressure from pubs, restaurants and other businesses whose income has plunged in the aftermath of public health warnings. On Tuesday, Britain announced that it would provide 1 billion pounds ($1.3 billion) in grants and other aid to help the hospitality industry survive omicron.
“As soon as they said work from home, it’s completely emptied,’’ said Sally Abe, a chef at the Conrad Hotel in central London. In London, downtown restaurants are suffering as office workers stay home. A diner in central Madrid absorbed cancellations for about half its booked space one week recently. travel agents, said that business - flights, cruises and package holidays - plummeted fell 40% in mid-December from a month earlier. The Advantage Travel Group, which represents U.K.
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“It impacts people’s perception of comfort and safety and their willingness to go out,’’ said Aaron Sanandres, CEO of the company.Īs infections have spread, European countries have so far gone further than the United States, with restrictions ranging from a full lockdown in the Netherlands to indoor mask mandates in the United Kingdom.Ī theater in western England refunded $240,000 in tickets.
So I am trying to be more selective in where I go in terms of big public spaces.’’Īt its stores in big cities like New York and Chicago, the clothier Untuckit is reporting a 15% drop in traffic, similar to what it experienced when the delta variant started spreading last summer. “From what I have been hearing in the news," Ballantyne said, "omicron is more contagious.
But as omicron spread, she scrapped that idea in favor of staying home and shopping online. Unable to assess its longer-term consequences, businesses, consumers and policymakers have struggled to respond to the omicron threat.ĭanielle Ballantyne, a Chicago dietitian, had planned to visit some stores and seek inspiration for holiday gifts. “We don’t know whether this is good or bad for growth or inflation in the medium term,’’ said Megan Greene, global chief economist at the Kroll Institute. Spooked by uncertainty and fear of the worst-case scenarios, stock markets around the world sold off for three days before rebounding Tuesday. Or will omicron prove a blip that scarcely slows what has become a surprisingly strong recovery from the short but intense pandemic recession? Will return-to-office plans for white collar workers be put on hold indefinitely, deepening the hit to many cities’ downtown businesses? Will it mean people will hunker down at home again and spend less on services - restaurant meals, concerts, hotel stays - which could weaken the economy but potentially defuse inflationary pressures?