The coronavirus pandemic is reshaping spending patterns, creating new winners and losers
By David J. Lynch - The Washington Post - August 11, 2020
Excerpt below:
Amid the second-quarter carnage that included gross private investment plunging by nearly one-half and consumption expenditures falling by more than one-third, Americans increased spending on just a few categories, including motor vehicles, recreational goods and housing.
David Kotok, chairman of Cumberland Advisors, likens the ongoing transformation to the difference between the Grand Canyon’s northern and southern rims. Much of the view is the same in each place, but the plant and animal life, even the weather, is distinct.
“In January, Macy’s was in the S&P 500. In July, it is not,” he said.
Last month, Procter & Gamble reported strong quarterly earnings, including a 14 percent sales gain in detergents and household cleaners, as Americans scrubbed and cleaned to ward off the coronavirus.
The reshaping of consumption also is leaving a mark on media and entertainment provider Comcast. As consumers hunkered down, revenue for the company’s theme parks evaporated. Attractions such Universal Studios Hollywood remain closed and the company collected just $87 million at its theme park turnstiles, down 94 percent from $1.5 billion in the same period last year.
Read the full article at The Washington Post : https://www.washingtonpost.com/business/2020/08/10/recession-coronavirus-pandemic-winners/
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