Consumer Sentiment & #4 Positive Outcomes of the Pandemic

Introduction

Happy Monday!! Welcome back to our News series, where we bring you short and sweet updates on the global economy. Today's news discusses consumer sentiment & several positive outcomes of the pandemic.

Consumer Sentiment

Key Highlights: -

US consumers feel the pressure of rising inflation and the rising cases of the latest Delta variant.
The market expectations of economic conditions index has fallen between the month of July & August from 84.5 to 77.9. Economic conditions are similar to the conditions experienced during the shutdown of the US economy in April of 2020.
US Consumers' finances and prospects were significantly damaged, especially when many expected the economy to begin opening up. The latter has felt that the recent news on economic recovery & growth may be short-lived due to the delta variant.
Evidence of retail earnings from Quarter 3 has also confirmed negative consumer sentiments. Retail earnings have indicated a temporary slowdown in spending if emergency funds are required.

#4 Positive Outcomes of the Pandemic

1. Automation

The negative preconception that automation steal jobs are diminished with restaurants adopting technologies to improve productivity. The latest trend in restaurants saw many utilising QR codes to speed up waiting times and improve public health benefits. Albeit QR codes has been around for many years, we have seen substantial usage during this pandemic.

Higher productivity figures among restaurants have managed to increase the wages earned by workers. Workers will be able to make more in the same amount of time worked. Higher productivity has contributed to economic growth as better pay leads to increase expenditure.

2. Power of E-Commerce

The pandemic and lockdowns have sparked the demand for e-commerce platforms. Americans have shifted their shopping habits from traditional brick and mortar to internet shopping. Statistics for the year 2020 to 2021 has indicated that the shift to internet shopping has impacted retail sales marginally.

3. Video Conferencing

Video Conferencing tools such as Skype, Microsoft Teams, and Zoom have been pivotal at keeping the economy afloat. Many companies have been conducting meetings through these tools. The impact of the pandemic has forced many to adapt to the different working conditions (work from home, mobile working).

For many years, upper management has trained and empowered their staff to become more efficient and technologically savvy. The pandemic has put to the test the training. Furthermore, many companies have elected to enable their team to have the option to work from anywhere.

4. Transition from Cash

The call for digital payments is needed now more than ever. The pandemic has created fear among consumers that physical cash may be a possible means of transmitting the virus. Smartphone payment apps such as Google Pay & Android Pay are utilised more and more by consumers today. The rise in consumer utilisation of digital means ensures safety from the virus and gaining additional points/cash benefits. On the business front, digitisation enables businesses to process transactions faster and provide its services to more customers.

Sources

Business Insider

US News