Consumer Spending Dropped By More Than 10% Due COVID-19 Pandemic Lockdowns
With most people on lockdown the past couple of months because of the pandemic, people just weren’t spending as much. In fact, American spending dropped by $1.89 trillion in the month of April. According to the report from the Bureau of Economic Analysis, that’s a 13.6% drop. The report is bad news considering about two-thirds of our economy runs on consumer spending. Experts have said they worry the second quarter might end up being the worst on record; however, on the flip side, less spending means people are saving more, which increased by 20% in April.