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Measuring the Effects of the COVID-19 Pandemic on Consumer Spending Using Card Transaction Data

Author

Listed:
  • Abe Dunn
  • Kyle Hood
  • Alexander Driessen

    (Bureau of Economic Analysis)

Abstract

We evaluate the economic effects of the COVID-19 pandemic on consumer spending using daily card transaction data. Overall, we find large effects of this pandemic on sectors such as accommodations and restaurants, which by the second week of March, show declines of around 80 percent and 70 percent, respectively. However, these declines were partly offset by the large 100 percent immediate increase in food and beverage store sales. For select goods and services in our data, we find an aggregate decline in spending of around 13.7 percent for March, and we estimate an aggregate “pandemic effect”—the effect of the pandemic on consumer spending after mitigation measures have had time to take hold—of around –27.8 percent.

Suggested Citation

  • Abe Dunn & Kyle Hood & Alexander Driessen, 2020. "Measuring the Effects of the COVID-19 Pandemic on Consumer Spending Using Card Transaction Data," BEA Working Papers 0174, Bureau of Economic Analysis.
    • Handle: RePEc:bea:wpaper:0174
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    References listed on IDEAS

    as
    1. Scott R Baker & Robert A Farrokhnia & Steffen Meyer & Michaela Pagel & Constantine Yannelis & Jeffrey Pontiff, 0. "How Does Household Spending Respond to an Epidemic? Consumption during the 2020 COVID-19 Pandemic," The Review of Asset Pricing Studies, Society for Financial Studies, vol. 10(4), pages 834-862.
    2. David Card & Carlos Dobkin & Nicole Maestas, 2009. "Does Medicare Save Lives?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 124(2), pages 597-636.
    3. Alexander W. Bartik & Marianne Bertrand & Zoë B. Cullen & Edward L. Glaeser & Michael Luca & Christopher T. Stanton, 2020. "How Are Small Businesses Adjusting to COVID-19? Early Evidence from a Survey," NBER Working Papers 26989, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Scott R. Baker & Robert A Farrokhnia & Steffen Meyer & Michaela Pagel & Constantine Yannelis, 2023. "Income, Liquidity, and the Consumption Response to the 2020 Economic Stimulus Payments," Review of Finance, European Finance Association, vol. 27(6), pages 2271-2304.
    2. Irving Fisher Committee, 2023. "Data science in central banking: applications and tools," IFC Bulletins, Bank for International Settlements, number 59.
    3. Horvath, Akos & Kay, Benjamin & Wix, Carlo, 2023. "The COVID-19 shock and consumer credit: Evidence from credit card data," Journal of Banking & Finance, Elsevier, vol. 152(C).

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    More about this item

    JEL classification:

    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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