How the covid-19 pandemic is changing Americans’ spending habits

DURING THE early days of the covid-19 pandemic, American shoppers raided the aisles of supermarkets and pharmacies as if they were preparing for the apocalypse. Retailers such as Costco and Walmart were so swamped they began limiting the number of customers allowed into their stores. Today, with stay-at-home orders in effect for 300m Americans in more than 40 states, the early rush to stock up seems to have subsided.by a team of five economists at American and Danish universities.

The researchers find that in the last week of February, as social-distancing measures were first rolled out, the consumers in their sample increased their spending by 94% compared to a week before. Expenditure on air travel soared and shoppers stocked up on groceries and other goods. Yet spending rose even for non-essential goods and services, such as restaurant meals.

Consumers did not react uniformly to social-distancing guidelines. Households with children spent more than other households in the early days of the pandemic, but later cut back twice as fast as those without, perhaps because parents were less inclined to venture out with their kids. Men seemed more reluctant than women to change their behaviour. They didn’t stockpile as much in the early days of the pandemic, and reduced their spending by less as restrictions began to bite.

Americans’ appetite for spending remains low. The University of Michigan’s index of consumer sentiment recently recorded its biggest slump since 2008. Spending could pick up in the coming months just as quickly as it fell, in a “V-shaped” recovery. But this may be wishful thinking. Even if Americans do emerge from lockdowns ready to splash the cash, they will have plenty of canned food to finish first.

I don't see the chart legend.

what is the proportion these sectors of the economy? 30, 50%?

Worthless paper

Penny pinching? You bet! People are scared. Dollars are getting short; & People want to keep what they have. The Cornucopia of Plenty is drying up. Fourteen Million People have already lost their jobs! They have learned that during a Deflationary Cycle; the Dollar is King!

After the turmoil , Economic dependence on China’s Yuan, China buys US banks and businesses...

They don’t need to buy groceries anymore? Why is it so much more down now?

It’s not penny pinching, as much as eating what’s in the freezer.

Uber & Lyft? Dead. Restaurants? Dead. Tourism? Dead. Retail (shopping malls, etc)? Dead. And yet, no public bailout, no comprehensive plan to help the average American recover from the crisis. Something is fishy about all of this.

Hoarding loses stability

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