June 24, 2020

COVID-19 Economic Impact Data

Coronavirus, ERISA, Wealth Management
by Alexander Papson

COVID-19 has had a tremendous impact on global economies and it is still unclear when and in what form economies will return to normalcy. It’s the view of Schneider Downs Wealth Management that paying attention to the data, in times like this especially, is worthwhile given there is no emotion or opinion inherent in it. With that in mind, and with the help of Natixis Investment Managers, we wanted to shine some light on the information below, which was released on June 18, 2020.

What Our Outbreak Looks Like¹: The outbreak has affected various age groups very differently. We found it particularly interesting that individuals age 64 or younger accounted for 68.8% of total US cases while maintaining relatively low fatality rates compared to older individuals.

Business Closure Rates (3/1/20-6/12/20)²: Looking at business closure rates by industry shows the large deviation in impact across different types of businesses from the pandemic and stay at home orders.

Number of Small Businesses Open by Sector³: Similar information to the above chart, this chart shows the percent of businesses open by sector relative to the national median.

Consumer Spending⁴: It is interesting to see the variations in consumer spending by industry during the pandemic version historical averages. Specifically, we see a material spike in grocery spending in March, which has normalized more recently. There are also a handful of sub-sectors that have experienced tailwinds as a result of the pandemic. Discount Stores and Video Games, for example, have experienced year-over-year increases in consumer spending of 48% and 62%, respectively, as of 6/14/20.

You’ve heard our thoughts… We’d like to hear yours

The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at [email protected].

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

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