As the country begins opening up for business, U.S. consumer sentiment is mixed, with many consumers uncertain of the future. The new normal is beginning to emerge, and we are anticipating that many of the changes in consumer behaviors we have seen during this time will have longer term implications for the future operating and business models for retailers and manufacturers.
COVID-19 economic impact is evolving
More than 30% of survey participants have had either a full or partial reduction of employment status as a result of COVID-19. However, more than half of those individuals have already returned to work. A better indicator of purchasing power may be household income. Our survey shows consistently across periods about 40% of households experienced a reduction in income.
Views on both the economic recovery and the return of consumer spend were mixed, but in June the survey showed a slightly more pessimistic outlook from respondents. Younger generations tended to be far more optimistic about economic recovery than their older counterparts.
Slightly fewer respondents (6% less) claimed a reduction to income in June than did in April. That may be the result of ramped-up stimulus and unemployment programs.
Impact on household income
Severity of impact to household income
Source: KPMG Consumer survey, fielded April 27,2020 – April 30, 2020 (2) KPMG Consumer survey, fielded June 4, 2020 – June 8, 2020. KPMG conducted a survey of 1,000 consumers across the United States and they were asked the question, “Please describe you current working arrangement” and “Please estimate the percentage reduction of your household income caused by COVID-19".