Consumer spending across the world is expected to take a hit in the second quarter of 2020 as sheltering in place and social distancing measures are keeping people from shopping
Food and beverage purchases spiked in March, when most containment measures took hold, as people were stockpiling ahead of self isolation. But other big ticket items, like tourism, retail and hospitality took a backseat.
The main question is what will happen to spending patterns after the great stockpiling is over. In the Netherlands, for example, supermarket sales have already declined in April, according to economic research firm Capital Economics.
Capital Economics forecasts that the eurozone and the United Kingdom will see the sharpest declines in consumer spending. That’s in part because “many European countries spend a lot on hospitality and very little on healthcare,” said Capital Economics’ assistant economist Gabriella Dickens.
In Britain, consumer spending could collapse by more than 30%. US consumer spending, meanwhile, could fall more than 20%.
— CNN