Article

‘Tis the season for spending

11 December 2021
Kristina Hooper
Kristina Hooper
Chief Global Market Strategist, Invesco Ltd
‘Tis the season for spending
London, England

The Covid-19 crisis hasn’t been accompanied by the lack of confidence we typically see in recessions.

In past crises, particularly the global financial crisis, the recovery depended on slowly building confidence over time, encouraging companies and households to spend.

This time, the economic shutdown was forced on people, and many were looking forward to being able to spend again as soon as economies opened up.

As the below charts show, household net worth improved during the pandemic. Are these savings poised to be spent this holiday season?

Figure 1. US Household net worth has increased over the course of the pandemic

Source: Federal Reserve Bank of St. Louis Economic Research Division.

Figure 2. We can observe a similar pattern in the UK data
Figure 2. We can observe a similar pattern in the UK data

Source: UK Office of National Statistics.

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