Business & Investment

Cash Flash American Reuters buys shares as pandemic limits spending options

Washington (Reuters)-Americans stay home and have free access to discretionary funding, but the COVID-19 outbreak has reduced spending options, according to a study conducted Tuesday. Entering the stock market and preparing a home.

According to The Conference Board’s Quarterly US Consumer Dynamics Report, 20% of consumers surveyed in the fourth quarter of 2020 invested in equities or investment trusts from 15% in the second quarter. There was no data for the third quarter.

“In addition to trends such as low interest rates and reduced debt concerns, subnormal spending on vacations and on-the-go entertainment due to pandemic restrictions has increased disposable income for some Americans and how to use it. Is less, “says Dennis. Darhoff, Senior Researcher at The Conference Board. “Equities that continue to generate strong returns are becoming an increasingly attractive option for these consumers.”

The percentage of consumers spending a lot on home remodeling increased from 21% in the second quarter to 24%. With the second year of the pandemic, fewer Americans are on vacation to buy new clothing and tech products.

The percentage of consumers spending money on holidays and vacations fell from 28% in the second quarter to 24%. Fewer people are also spending time on entertainment and healthcare outside the home.

The percentage of consumers spending money on savings fell from 49% in the second quarter to 43% in the previous quarter, probably because interest rates are close to zero.

However, the pandemic has widened income inequality, exacerbated by the so-called K-shaped recovery, and while low-wage workers are losing, high-wage workers are doing well.

According to a survey, 26% of consumers did not repay their debts such as credit cards and loans. It fell from 29% in the second quarter, but remained fairly high. Just under one-fifth of consumers haven’t put money into retirement funds, and 10% say they don’t have the cash to spare.

At least 17.8 million people are receiving unemployment benefits.

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Cash Flash American Reuters buys shares as pandemic limits spending options Cash Flash American Reuters buys shares as pandemic limits spending options

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