US Economic Recovery Hits Standstill After Consumer Spending Declines Once Again
According to consumer spending data compiled by JPMorgan, it appears that the economic recovery in the US has not been making the kind of headway that was anticipated in response to the copious government stimulus.
Analyzing the use JPMorgan Chase debit and credit cards, consumer spending across the US has remained well below 10% in June, compared spending levels in the same month only a year prior. This grim data comes after the month of May saw a significant uptake in consumerism following a record-low in March and April. Although some sectors have been subject to an increase in spending- such as wholesale retailers and supermarkets amid the pandemic, there has been a simultaneous drop in consumerism at gas stations, air travel, restaurants, and accommodations.
Moreover, the data also points to a significant spending gap between different age groups. Spending by Americans that fall into the baby boomer age group has fallen by 18%, while those that are considered millennial and gen-z consumers have only decreased their spending by 4.1% compared to last year. The decline in consumer spending comes after many states had to reimpose certain lockdowns and restrictions following an alarming resurgence in coronavirus cases.
Information for this briefing was found via JPMorgan. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
