US Consumer Expenditure Outlook 2020 Q3

US spending sees unprecedented volatility in Q1 and Q2; second half outlook remains

Recovery from Pandemic Induced Recession in Consumer Spending will Take Time

The US is in the midst of the worst economic recession in 80 years. Due to pandemic-induced shutdowns and constrained consumption activity, GDP dropped by 11 percent in the first half of 2020. Employment fell below 2019 levels. By September 2020, over 28 million Americans had filed for jobless claims. There has been a dramatic global reduction in economic activity due to social distancing measures implemented to curb the COVID-19 virus spread. These measures – including working from home, remote learning, widespread cancellation of events, and the reduction of travel – resulted in many business closures.