The entire Coronavirus crisis has severely hit economies all over the world. The United States is not an exception. Pandemic pushes US personal spending to record largest decline since 1959. Research by Finbold.com shows that the United States’ personal spending has significantly dropped by 7.5 percent monthly. Data obtained indicate that between March and February this year, the US personal spending registered its worst figure since 1959.
Personal spending projected to improve in mid-2021
From the data, personal spending in the US increased by 0.2 percent in February compared to January this year. The decline has been attributed to the Coronavirus pandemic that peaked between March and April. According to Finbold’s research report:
“This massive drop represents the largest decline in personal spending on record, which means since 1959. There was no crisis during the last 60 years that affected in such a negative way the personal spending of U.S. families.”
The report further indicates that personal spending in the USA is projected to drop by 2 percent by the end of this quarter. Further projections indicate that personal spending in the U.S. could stand at 0.50 in the next 12 months. By mid-2021 the situation will start improving with personal spending moving towards 0.70 percent.
Personal spending in the U.S. is measured by the Personal Consumption Expenditures (PCE) index, which takes into account how much of the income earned is spent by U.S. families.
Global economies have been impacted by the Coronavirus and the United States has not been spared either. Several states have imposed lockdowns to curb the spread of the Coronavirus.
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