Question

Discuss the impact of Covid-19 on consumer spending based on the content of this article.

https://www.visualcapitalist.com/how-u-s-consumers-are-spending-differently-during-covid-19/

Answer 1

COVID-19 has affected nearly every part of our everyday lives, and consumer spending is no different. In general, spending is down throughout all markets, since lockout policies have reduced what we will spend money on so supermarkets and stores are shut down and air travel is suspended. In comparison, the economic effects of the coronavirus pandemic have ensured that consumers are less likely to buy more.

Globally, consumers prefer to invest on such items such as food and household goods and, in certain circumstances, pay more relative to pre-pandemic stages.

Consumers in nearly all the countries surveyed say they may increase their spending on at-home entertainment due to shifts in television viewing patterns. This is particularly true for Korea, a nation that already boasts a large gaming community.

Many categories such as fuel, wellness, and pet-care facilities tend to be bouncing back as prohibitions in China raise, which may be a promising indication for other countries on a similar trend. But while buyers are increasing their spending on the items they need, they still plan to invest less in other areas.

Restaurants and out-of-home entertainment are groups exhibiting a troubling decline. There are, however, two very hard-hit industries worth mentioning that display declines in every segment and nation: