As recession fears mount, nearly 4 in 10 American workers see reduction in wages, hours due to coronavirus pandemic
Nearly two-thirds (63%) of consumers have already felt the economic impact of the coronavirus outbreak in some way, according to a LendingTree survey of 1,050 Americans conducted on March 13, and 44% are worried about their ability to pay rent or their mortgage in the midst of the global pandemic.
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Key findings:
- 63% of consumers agreed their personal finances have been impacted by the coronavirus in some way. More than a quarter (27%) lost money in the stock market, and about one in five (21%) are spending more money than they can afford on supplies.
- About 4 in 10 working Americans said their paycheck has been negatively impacted due to the coronavirus pandemic. That jumps up to 51% of employed Gen Z and 44% of employed millennials.
- 44% of Americans are worried about their ability to pay rent or their mortgage amid the coronavirus pandemic, and 23% are concerned about affording their monthly credit card bills.
- One in 6 Americans (17%) worries about the cost of medical treatment should they contract the coronavirus.
Looking ahead, Americans fear financial instability due to coronavirus, as evident in the LendingTree report. Tendayi Kapfidze, chief economist at LendingTree, predicts that stunted consumer spending due to the coronavirus will lead the country into a recession.
“The changes in consumer behavior will likely lead the U.S. into recession,” said Kapfidze. “After an initial boost in consumption due to preparation, spending is set to contract sharply as broad sectors of the consumer economy shut down.”
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