By all technical definitions, the United States is still in pandemic. As of September, the World Health Organization has only declared the end of the pandemic “in sight,” but not here — especially as the number of Covid cases rises and threatens another harsh winter.
Some lifestyle changes during the pandemic like wearing masks in the US are still common, especially when The Centers for Disease Control and Prevention recommends wearing a mask in areas with high infection rates including New York and Los Angeles.
However, Americans’ money habits have almost completely returned to pre-pandemic trends. After nearly two years of significant disruption — for better or worse — here are three examples of how the pandemic economy will end in 2022:
1. Consumers are back to spending on things to do instead of things to have
Big retailers like Walmart and Target have done headlines this year for excess inventory hurt their bottom line as consumers change their spending habits. After stocking up on electronics and other household items over the past two years, consumers are back to spending on services including travel and entertainment.
Consumer spending on durable goods rose about 6% in October year-over-year, compared with a more than 8% increase in services spending. According to Bureau of Economic Analysis.
Two of the industries hardest hit by the pandemic – tourism and hospitality – have almost fully recovered. Consumers have returned to the sky with global air passenger traffic approaching 74% from September 2019 levels this past fall According to the International Air Transport Association.
And whether at home or when they travel, Americans find themselves eating out more at restaurants than in 2019, data from the OpenTable reservation platform Shows.
Although airlines and same restaurant continue solve the labor shortage Amid spikes in customer demand, long queues and sold-out bookings have identified industries this year that reflect a return to normal leisure activities for the majority of the population. number.
2. Recovery spending makes saving harder
Consumers may have expected to spend more this year as they can directly go back to work and go out to play. But persistently high inflation and fears of an impending recession make it difficult for people to control spending and maintain good savings habits.
According to Angeli Gianchandani, a consumer behavior expert as a practitioner in the brand’s residence, government financial support helps consumers achieve those goals throughout the period. the peak of the pandemic didn’t exist in 2022, changing the way people use their money once again. MBA programs in marketing and operations at the University of New Haven.
“The stimulus check and unemployment benefits allow people to spend – they spend money because they have money,” she said. Those government subsidies allow people to spend more, but they also save money by not having to go to work, shop for clothes or get their hair done.
“Spending has changed, and now the pendulum has skewed to the other side with inflation,” she said. “We’re seeing the impact this is just a shift and a burden on people.”
After paying off your credit card debt and Savings are higher than ever During the peak of the pandemic, many consumers returned rely on credit to cover everyday purchases.
3. Investing is no longer fun and games
It’s not just events like GameStop Crazy What has brought the stock market to life in 2021, but also the fact that the market appears to have fully recovered and is poised to resume growth as the world continues to reopen. But that optimism began to slide late last year and continued to wane throughout 2022.
Will not only Major stock indexes end the year on a sour notebut other big investments like Buying a home has become more difficult this year when the Fed raised interest rates to help curb inflation.
The combination of pandemic-induced factors — more downtime at home, pent-up savings, and low interest rates — allows consumers to spend and invest more comfortably during peak periods. point of the pandemic. Now, with high prices, precarious economic health, and several other crises still brewing (war in Ukraine, climate change, political tensions in the US), people are looking for the stability.
“This uncertainty that we may be experiencing, you will see once again consumers changing habits,” said Gianchandani. From where they shop to where they work and where they invest, she says people are looking for companies that have a foothold and show how they create value for their shareholders, not just profit. “Companies need to be able to talk to clients must be transparent and open, and help them build trust to overcome any of these challenges.”
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