Eurozone | Consumers are raring to spend

According to our analysis, eurozone consumers are raring to get spending as soon as restrictions are eased. Our modelling, based on a range of high-frequency data, shows that most of the current restraint on spending is being forced by the closure of spending outlets rather than being a voluntary response to uncertainty.

What you will learn :

  • Since the eurozone’s first lockdown, firms’ and households’ behaviour has adapted as understanding of the virus has improved. As a result, during the second wave most of the reduction in mobility has been driven by Covid-containment restrictions.
  • We find that a bulk of the savings accumulated during the pandemic were forced rather than built as a precautionary buffer due to high job uncertainty.
  • Evidence from credit card data also suggests that consumers will be quick to return to shops when restrictions are relaxed.

Topics: Europe, Eurozone, Consumer spending, Coronavirus, Macro, Consumer, Recovery

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