Coronavirus changing how consumers spend
The coronavirus isn't only effecting investments, it is changing how consumers spend money too.LINCOLN, Neb. (KLKN) — The coronavirus isn’t only effecting investments, it is changing how consumers spend money too. Channel 8 talked to a UNL economics professor who shares his thoughts.
“The coronavirus outbreak in China and other countries in Asia is for sure somewhat negative for the U.S. economy because of the trade relationships we have with those parts of the country,” said Eric Thompson.
Stores like Walgreens and CVS are warning there could soon be short bouts of hand sanitizer shortages. The CDC says the best way to prevent transmission of the coronavirus is to wash your hands.
Thompson says what locals can expect in the short term is that businesses can be hesitant to spend and so can consumers.
“It could be some effect on business,” said Thompson. “So, businesses don’t like uncertainty when you need to make investments or if people need to make decisions on major household purchases, it’s natural to be hesitant when there’s uncertainty out there.”
He adds that investors are trying to assess how severe the virus will be on the economy and the DOW could rise or fall.
“It could end up being not really severe, in which case the stock market will go back towards the levels it was at or it could end up being severe as some have worried and then the stock market would fall further,” said Thompson.
Until people know how far the coronavirus is going to spread, many Americans and businesses will continue to be cautious.