Spending Decreases As Pandemic Ramps Back Up
The U.S. Department of Commerce recently released a report that offers the first solid glimpse of how the spread of the Covid-19 delta variant may be affecting spending habits in the U.S. According to the report, spending in July fell at stores that sell clothing, furniture and sporting goods; and while restaurants and bars continued to see increases, growth rates have slowed from recent months before the variant. Most surprisingly, the report reveals that even online sales have slowed, falling 3.1% from June.
While not included in the report, economists think that Americans are shifting their spending from goods to services, and that the rising prices for everything from food to more durable goods such as washing machines have reigned in spending as well. (The Detroit News, 08.17.21)
While recovery appeared to be on the home stretch, the delta variant is likely going to stunt that recovery for a time. If your business is being impacted, H2R can help. Schedule a free consultation today or check out our research options here.
Want market insights in your inbox?
Sign up below to receive H2R's free monthly e-mails summarizing the latest trends.
We respect your privacy.