Jessica Kuntze
The government has been spending a lot of money to help Australians keep paying their way through the coronavirus pandemic, so how is that translating to consumers?
According to Trading Economics research, consumer spending has decreased in Australia since the pandemic began, by about 12% in the second quarter.
This means that with all the mooney being taken out of the economy by the government for various support payments to help keep the economy afloat, there isn’t much going back in.
The coronavirus pandemic has caused a lot of problems within the economy, causing some households to struggle to meets ends at times due to job losses and income reductions, making it hard for them to put anything back into the economy.
According to a BT article, “71% of conusmers have cut their spending” due to the pandemic, holding off on both making large payment and borrowing money.
For those who have found themselves earning more money, whether they were an essential worker or receiving more from the government, they have also found that their spending habits have changed.
Through my own research, I have found that about 56% of my respondents have been earning more money due to the coronavirus pandemic, with about 11% earning less.
Of those who responded to my survey, about 72% stated that their spending habits have changed since the pandemic began, with 38% of those spending less for various reasons.
Those who have been spending more have been making more online purchases on things such as hobbies and clothing, as well as buying more food for their lockdown needs.