How is COVID-1 Impacting Consumer Spending?
Updated: May 6, 2020
EconWatch (April 12, 2020)
COVID-19 cases are at an all time high. According to the CDC's most recent data, over 525,000 cases and 20,000 deaths have been reported in the US. Due to the unprecedented nature of such a pandemic, the effects of COVID-19 on businesses are inevitable.
The large spike in unemployment is a huge factor as incomes are dying out and people are prioritizing their essential spending. Recently, more than 16 million workers have filed for unemployment (New York Times).
As a result, most of the dining, transportation, entertainment, and shopping industries are hit hard. Revenues in the travel sector for the week ending April 1 are down 85% from the same time the previous year (New York Times).
However, this COVID-19 outbreak isn’t all bad. It has also created many opportunities for online based industries as we see a huge shift in reliance toward virtual platforms. The grocery, gaming, and video streaming industries, for example, are thriving.
While the COVID-19 pandemic has adverse effects across numerous industries, it's a turning point in the way we perceive and utilize technology in the modern world.
Learn more about the impact of COVID-19 on consumer spending in specific sectors here:
https://www.nytimes.com/interactive/2020/04/11/business/economy/coronavirus-us-economy-spending.html
