In July 2020, KPMG polled 1000 consumers across the U.S. to learn about the effects of COVID-19 on their income, employment and mobility; their sentiments around the economy; and their predictions for spending in the fall.
The road to recovery appears long
The level of optimism among U.S. consumers and their anticipation of a return to spending are trending downward. With each of our consumer pulse surveys since April 2020, an increasing percentage of respondents think the recovery will take two or more years. Regional sentiment varies, with pessimism highest in the West.
Temporary impacts to employment status are becoming permanent
Approximately one third (34%) of our July survey respondents said their employment status had been impacted by COVID-19, similar to what was reported in June.
However, the kinds of impact are evolving. In April, almost 60% of respondents whose position had been impacted said they were furloughed. In July, far fewer of those impacted said they are furloughed while a much higher percentage said their position was eliminated. Companies are “right sizing” their organizations for the new reality.
Impact on employment status
Note(s): (a) KPMG conducted three surveys of 1,000 consumers across the United States, and in all instances they were asked the questions, “Was your employment impacted by COVID-19” and “Please describe impact to employment”. (b) Regarding the type of impact to employment status, “Other” includes those who switched from full time to part time, hours were reduced and a small group of those who started work due to COVID-19.
Source(s): (1) KPMG Consumer survey, fielded April 27, 2020 – April 30, 2020 (2) KPMG Consumer survey, fielded June 4, 2020 – June 8, 2020 (3) KPMG Consumer survey, fielded July 20, 2020 – July 24, 2020