Image default
Greek News

The Pandemic’s Uneven Effect on Consumer Spending in the US (infographic)

When the COVID-19 pandemic arrived in the United States in March, forcing widespread lockdowns to contain the spread of the virus, consumer spending fell off a cliff. Following an abysmal April, which saw spending levels down more than 18 percent compared to January, personal consumption expenditure started to recover, however, coming within 1.75 percent of pre-pandemic levels in October before edging down slightly in November and December.

That’s only half the story though, as the following chart, based on data from U.S. Bureau of Economic Analysis, illustrates. While spending on goods quickly recovered from the initial shock, returning to growth as early as June, consumer spending on services is still more than 5 percent off pre-pandemic levels.

The reasoning behind these numbers is straightforward: as the pandemic severely limited people’s option to spend money on services, e.g. restaurant visits, travel and other leisure activities either restricted or advised against, they shifted their spending to physical goods, trying to adjust to life with the coronavirus.

And while it’s certainly positive to see overall spending levels recover relatively quickly, especially considering that 10 million Americans are still jobless, the sluggish recovery of consumer spending on services is cause for concern. After all, the United States is a service economy, as a look at the composition of the U.S. GDP reveals: in 2019, personal consumption expenditure on services accounted for 47 percent of the gross domestic product, making it by far the biggest contributor to the country’s economic output.

source statista

Infographic: The Pandemic's Uneven Effect on Consumer Spending | Statista

You will find more infographics at Statista

Σχετικα αρθρα

The Global Wealth Pyramid (infographic)

admin

No deal at the Council of Ministers of Energy – Disagreement on the upper limit on the price of natural gas

admin

Post-COVID recovery forecast for hotels and short-term rentals in Europe (infographic)

admin

Erdogan says he wants Turkey’s interest rate in single digits this year

admin

Google’s large investment presentation in Greece

admin

Natural gas: European Commission says “no” to the cap proposal, according to Politico

admin

PM Mitsotakis: The majority of member states support the gas ceiling – The letter of the “15” to the Commission

admin

Where’s the Best Internet in Europe – Where is Greece? (infographic)

admin

Financial Times: Greece one of the seven economic wonders of a worried world

admin

Where are the Global Super-Rich from? (infographic)

admin

Greece among worst countries for self-employed citizens at risk of poverty and social exclusion, Eurostat says

admin

The World’s Suppliers over the last 70 years (timelapse video infographic)

admin