Coronavirus not only made thousands of Americans ill; it tremendously affected the economy, the unemployment rate skyrocketed, many small businesses got shut down. Almost all of us live in the uncertainty of what to expect in general. Many Americans started revising their spending habits to be extra protected from unexpected situations.
Food expenses.
More than 40% of people are ordering less food. Even though there are still plenty of restaurants which offer food to go, the majority of people prefer to cook at home for safety reasons: to protect their health and their wallet. Besides avoiding take-outs from restaurants, people became more frugal - they buy only essential produce from grocery stores. And due to income loss, fewer consumers may be able to afford specialized or high-value products like organic vegetables. These purchase reductions are stressing growers and if we have to expect some environmental stressors like flooding, the agricultural industry will become weak and vulnerable.
Shopping in general.
Consumers prioritize essential purchases like cleaning supplies or canned goods over some secondary stuff like clothing, toys and anything else they can survive without. The pandemic developed a tremendous demand in hand sanitizers, disinfecting wipes, masks, and immune stimulation vitamins. Sometimes though, panic drives people to do strange things like extensively buying toilet paper. Why do they do that? Researches say that toilet paper is bulky and distinctive, so people notice it more. And then it starts to acquire an increasing psychological value to people. Fear is very contagious, and when people anxiously do certain things you unintentionally copy their actions.
Vacation delay.
Many people canceled or delayed their planned vacation. Luckily, most airlines were loyal and provided refunds for the airfare expenses, as well as hotels and other accommodation they paid for. As the lockdown continues for the whole spring and summer - the peak season for travelers, the airline industry stands to lose the most. Current estimates put that loss at more than $250 billion. Based on travel restrictions and an expected global recession, IATA estimates that global air transport industry revenues could fall by $252 billion, 44 % below 2019’s numbers.
Buying a house.
The U.S. housing industry is on lockdown. New construction sales centers are empty. In most states, real estate agents can't show houses. But for some, it’s not a barrier and they try to negotiate everything online using tools like Zoom meetings, which allows to follow shelter-in-place policy.
While 10 % have put off buying a home until the best times, the other percentage is actively buying a new property since the prices on the real estate market significantly dropped.
Uncertainty is the biggest future risk not only for housing but for the whole economy in general: no one knows exactly when it’s over and how big the consequences will be. We at Financial Rescue are ready to help you with our debt relief solutions. We will settle your debts, cut down the total amount you owe and consolidate your debts into a single low payment. This is your chance to take on your debt and start building your savings during these tough times. Contact us today and get help with resolving your financial situation.