Overall, which of these best describes how significant the coronavirus situation is in affecting your spending and planned purchases?
UBS Evidence Lab surveyed 1000 consumers on near-term spending outlook
UBS Evidence Lab surveyed 1,000 consumers across the country on March 19-21 to capture their expectations for spending over the next month. Our three key conclusions based on the survey data are: 1) The outlook for spending near term remains soft, even in categories like food delivery; 2) A further curtailment among affluent consumers could accelerate the decline in spending near term; and 3) Spending may not be entirely resilient — while most retrenchment in spending may return in the future, 28% of respondents are contemplating a more permanent decrease.
In food ordering, the outlook is mixed but the affluent lead...
While most respondents indicated they expected to order food delivery at the same level as last week (28%), less (23%) or not at all (29%), among the highest income cohort (>$100K), 35% intended to order food delivery more. Ordering from restaurants showed a similar trend.
...While in apparel and footwear, the affluent may retrench further
Apparel and footwear purchases showed a weak overall demand trend, with 35% not intending to spend in these categories over the next month and 32% intending to spend less; however, among the upper income group, 41% intended to spend less. Among those willing to buy, online commerce is an increasingly viable option, unsurprisingly.