CONSUMER SPENDING SET TO RISE

CONSUMER SPENDING SET TO RISE

The pandemic that swept across the world in 2020 caused a sudden decline in consumer spending. Few businesses, if any, were untouched by this. Consumer behavior changed drastically and many of the businesses that could not transform their business models to meet these changes didn’t survive.   

If your business survived through the worst of the previous months, there’s good news for you. While the pandemic is still here with us, researchers predict an increase in consumer spending in the coming months.

Consumers are expected to increase their spending as federal stimulus checks are approved. This will increase the spending power of households that have been affected economically by the pandemic.

Spending is also expected to be driven by the roll-out of vaccines and lower infection rates. As the effects of the pandemic continue to subside and more businesses reopen, consumers will be more ready to log off and spend money on services and experiences that they have missed while under lockdown.
Consumers may also spend more money with the desire to make up for all that they had missed while staying at home. They will be able to purchase physical items that they desired but could not access due to the lockdown orders.

The bottom line is that there is a lot to look forward to as a business in this new normal. There is a strong position for improvement of businesses and the economy in general.