It’s possible that consumer spending could slow down in the coming months.
That’s the latest from economists who say that the second half of 2021 could be tough on the economy. The signs have been positive through the first half of the year- despite a workforce shortage and concerns about inflation.
That said, excitement about reopening has driven people’s desire to spend money and engage with an economy that was largely shut down in 2020.
“A drop of five points reflects that people are getting concerned,” said Don Levy, Director at Siena College Research Institute. “We saw demand for automobiles, but no we are seeing people paying above sticker price, which almost is in recent memory, is unheard of in automobiles. so that demand may shrink.”
The biggest question mark for economists and watchers of the U.S. economy is the Delta Variant of COVID-19, which is spreading significantly across the world. It’s driving lockdowns and restrictions in other parts of the world, and even re-instating some mask mandates in parts of the U.S.
“Uncertainty of not knowing where the nation is heading in the fall, I think people are a lot more cautious with their spending in a lot of cases,” said Kamala Keeley, President of Three Rivers Development in Chemung County- while speaking with MyTwinTiers.com.
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