Technology U.S. Payments - UBS Evidence Lab inside: Wave 2 COVID-19 Spending Survey

The biggest change from last week's survey is that more mid- and high-income consumers show signs of viewing their spending decline as temporary; while a modest positive development, overall outlook remains for spending contraction.

06 Apr 2020

Overall, which of these best describes how significantly the coronavirus situation is affecting your spending and planned purchases?

Source: UBS Evidence Lab

Wave 2 of the UBS Evidence Lab weekly consumer spending survey

UBS Evidence Lab surveyed 1000 consumers across the country on March 26-28 about their spending expectations over the next month. Our two key conclusions are:

  1. The outlook for spending near term remains soft; however, it improved WoW among the higher income cohort; and
  2. Like last week, the data indicates spending may not be entirely resilient, with 28% (unchanged) contemplating a more permanent decrease, but with some improvement in outlook among the mid- and higher income groups.

In restaurant & food ordering, high income group remains a bulwark

While most respondents expected to order food delivery the same amount (36% vs. 28% last week), less (28% vs. 23%) or not at all (16% vs. 29%), among the highest income cohort (>$100K), 46% (vs. 31%) intended to order delivery more. Ordering from restaurants showed a similar trend.

In various retail categories, the affluent may be re-expanding a bit

Apparel and footwear purchases showed a weak demand trend, with 35% (unchanged) not intending to spend in these categories over the next month and 30% (vs. 32%) intending to spend less. In the upper income group, 41% (unchanged.) intended to spend less, but those intending to spend more increased to 25% from 10%. Also, among this group, ecommerce intentions increased significantly from last week across retail categories.

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