Delta variant could cause consumers to pull back on spending, BofA economist warns

The leisure and hospitality industry has come a long way from the depths of the pandemic, when the most stringent lockdown measures were in place, but the fast-spreading Delta variant threatens to undo the progress made by businesses in this sector, according to a top economist for Bank of America. 

American consumers have driven the economic recovery from COVID-19 with help from generous stimulus payments and the loosening of pandemic-related restrictions, leading them to spend once again on entertainment services like travel and dining out. "They reinforce one another very powerfully and that created a burst of economic activity over the past few months," said Michelle Meyer, chief U.S. economist for Bank of America. "And the risk is the threat from Delta will cause a speed bump for the economy when it comes to engagement in these activities."