The U.S. government kept giving people cash. With the gradual improvement of the epidemic, suppressing the consumer market for a year, a wave of retaliatory consumption is about to emerge.
According to the estimates of Bloomberg Economic Research Corporation, from the beginning of the epidemic to January this year, the total savings of the American people was about 1.7 trillion US dollars.
“With the reopening of the economy, consumer spending in the next two quarters may be the strongest period in at least 70 years, and the rebound in the service industry will be the most obvious.”An economist at Wells Fargo Bank said.
Multiple rounds of stimulus checks have significantly promoted the recovery of the US retail industry
Researchers say that a one-time epidemic relief fund can increase consumer spending to a greater extent.
The last round of stimulus checks for $600 has driven a surge in discretionary purchases in January. Retail sales in the United States have grown the most in seven months, and department store sales have increased by nearly 21 month-on-month.%.
The sales of many types of shops and restaurants are still far below the level before the epidemic, so there is still a lot of room for consumption growth. The current round of $1,400 stimulus checks can increase restaurant sales by up to seven weeks, Bloomberg Intelligence said.
According to Wells Fargo’s calculations, the top 10%of people with the highest income account for nearly half of US personal spending.”Almost half of American consumers said they will buy a small amount of luxury goods in the next six months.” Bank of America economist Michelle Meyer said. According to a survey conducted by Accenture (Accenture), more than one-third of respondents indicated that they would buy larger and more Expensive product.