A shopper is assisted by an employee at a Lowe hardware store in Philadelphia, Pennsylvania, the United States, on Nov. 4, 2020.
Mark Makela | Reuters
A new round of stimulus checks on Americans’ bank accounts before the end of the year could give retailers a welcome boost this holiday season, according to a new study.
Assuming there are no additional government incentives, 37% of consumers said they are likely to be less likely to spend during the holidays, while only 16% plan to spend more on gifts Franklin Templeton-Gallup Economics of Recovery Study found.
Assuming there is a $ 1,200 stimulus payment, the percentage of those who want to spend less drops to 30%, while the percentage of those who plan to spend more on gifts, according to the survey, drops to 30% based on online responses, increasing to 22% from 5,002 people from October 1st to 9th.
After the government issued millions of checks to consumers as part of a historic $ 2 trillion aid package passed in March, consumers could no longer shop for essentials like groceries and toiletries, but also buy new technology and home improvement items.
But this temporary boom has largely faded, unemployment remains high, and many Americans are trying to plan their way through the holiday season as uncertainty about how the pandemic will unfold is great.
America recorded more than 150,000 new Covid cases on ThursdayIn the country for the first time since the pandemic about nine months ago. Also Thursday, Chicago Mayor Lori Lightfoot asked residents to cancel their Thanksgiving plans and stay home unless they have to go to work or school, or make important trips like the grocery store.
Analysts say it will be difficult for lawmakers to pass pandemic control law before inauguration day on Jan. 20. This does not seem to be a priority for the President Donald Trumpwho has contested the election results since November 3rd. Elected President Joe Biden has listed coronavirus relief as one of its top priorities when he takes office.
That aid might not come soon enough to save the holidays.