Consumer data in the retail sector declined in May after peaking in March when the distribution of the third stimulus check began, the drop could generate a discussion about the need to grant a new direct deposit
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Wednesday, November 13
Fourth stimulus check: declining consumer spending could fuel your discussion
According to Commerce Department data, consumer spending on retail increased nearly 10 percent in March following the issuance of the third round of stimulus checks. However, spending levels increased by only 0. 09% and continued their downward trend further in May, reaching -1.3% .
The data show that after the delivery of the third stimulus check people spent more as more people started using their direct deposit money . Although unemployment continues to decline, so is spending levels.
Could a new stimulus check arrive?
Experts have looked at economic data showing that consumer spending has been helping American families cope with the crisis . However, that momentum appears to be waning as the Capitol attempts to reach an agreement on Biden’s infrastructure plan ahead of the summer break.
Lo What is beginning to worry specialists and legislators is that the decline in consumer spending will continue into levels that were recorded during the first phase of the coronavirus pandemic . That is, in February of 2021 Consumer retail spending amounted to $ 525, 000 million dollars, last month that figure was $ 525, 000 million dollars.
According to the New York Times, experts believe that the data shows that it is most likely that consumers spent all they needed to remodel their homes or upgrade their tech items during the first months of the pandemic . Now, instead of spending continuing in retail, consumers are purchasing other services such as travel and services.
During 2021 Retail spending may indicate that households may be withholding their money or do not have the disposable income needed to spend at the same March levels.
If spending levels continue to fall, could be a red flag for legislators that an additional amount of direct payments is needed . Spending data for June, July and August will be critical to understanding current trends.
Vaccination is expected to make more people feel more comfortable when traveling, when going to the movies, concerts, restaurants and sporting events. However, a study by the National Bureau of Economic Research found that Unemployment benefits have seen their income exceed levels from when they received a salary when they worked before the onset of the pandemic .
Related: Fourth stimulus check, away , But Tax Credits Are Coming Soon: The IRS Calendar
As a Dozen States Cut Federal Unemployment Benefits and that earned with unemployment benefits , spending could decrease.
It will be in September when federal unemployment benefits across the country end and legislators will have a host of indicators to assess whether the economy could benefit from a new round of stimulus checks, though the White House has not offered assurance that it is promoting a measure of such magnitude .
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