A Fed report on the economic recovery, JPMorgan research on ending unemployment supplements, increased demand for warehouses, small business shipping challenges, and pet startups are among the top business news items this morning.
National
Labor and supply shortages have hampered an economic recovery brought on by COVID-19 vaccination efforts and the relaxation of business restrictions, according to a Federal Reserve report. The report also indicates that the Fed expects inflation to be “more lasting” than originally expected as the United States returns to full employment, but that inflationary pressures will still be temporary.
JPMorgan researchers suggest that states that ended federal supplemental unemployment benefits early have seen little improvement in their labor markets as a result of the action. The study found that stopping the $300-a-week supplement did not improve online job search frequency, reduce filings, or spur economic activity such as restaurant bookings.
Business trends
The COVID-19 pandemic has prompted a surge in demand for warehouses as e-commerce demand grows, bringing industrial vacancy rates near record lows and boosting rents for these properties. The trend comes as office vacancies soar due to new remote work models increasingly being adopted by companies.
Small businesses are facing greater shipping challenges, adding to the challenges these companies are already facing from labor shortages and higher product costs. Delays, lack of available space on cargo ships, and higher freight costs are among the issues confronting small importers.
Startups catering to pet owners are seeing a boom following the boost in pet adoption during the COVID-19 pandemic. New companies offering a variety of products and services, ranging from connected collars to gourmet dog food, are getting increased attention from venture capitalists.
