The Sin Bin • Re: Who's Gonna Pay?
Sal Paradise wrote:
People will start spending as soon as the floodgates open - they will not being on holiday so they will have additional monies to blow - if they have a job
You would hope for this effect but also if households have been running down their savings and businesses running down reserves during the shutdown they may have a more risk-averse attitude so consumption and investment will fall, especially as future expectations will be more negative - even those in jobs will be more fearful of their job security and businesses may anticipate future falls in demand. Remember there is potentially no deal Brexit at the end of the year and all the associated additional costs that will come from that.
Statistics: Posted by sally cinnamon — Sun Apr 05, 2020 1:20 pm