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Consumer Spending Posts Steepest Monthly Drop on Record

Consumer spending plunged 13.6% in April, according to a Bureau of Economic Analysis (BEA) report released Friday. The $1.89-trillion monthly decline was the largest since the BEA began tracking the data in 1959.

April’s drop followed a similarly steep, revised 6.9% drop in March when the lockdown began. Spending has nosedived nearly 20% since February, before the lockdown to stop the spread of COVID-19 began, CNN reported. Conversely, savings as a percentage of disposable income rose to 33%in April. That compares to 13% in March.

Whether those savings translate into a bout of consumer spending as states reopen remains to be seen, though. CNN notes that economists predict it will take consumers some time to resume their normal spending habits, including discretionary expenses on items such as movie tickets or restaurant meals. Since millions of Americans have lost their jobs due to the pandemic, uncertainty on that point remains high.

Read more at CNN

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types as well as delving into broader subject matter. He produces 15-20 daily news stories per day and also works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications.

  • ◦Economy
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