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Consumption in Spain during the state of alert: an analysis based on payment card spending

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  • José González Mínguez
  • Alberto Urtasun
  • Miguel Pérez García de Mirasierra

Abstract

In recent years, information on the usage of cards as a means of payment has been increasingly used as an indicator of private consumption. The advantages of such information include its daily frequency and the short time lag from the moment of spending until it becomes available. This article uses this indicator to analyse Spanish household consumption since the state of alert was declared in mid-March and to explore the corresponding determinants. Indeed, the drop in consumption during the COVID-19 health crisis has been far greater than that suggested by the usual determinants, indicating that other factors could largely explain the developments observed. Included here are the greater uncertainty as to the course of the disease and its economic repercussions, and the restrictions on people’s movement and on various economic activities during the state of alert. Card payment data can be used to investigate the importance of social distancing measures when explaining the developments observed in consumption since mid-March. The article identifies that the indicators of payment card usage show a high correlation with the course of the restrictions on movement and activity. The information available also shows how in-person purchases were replaced by online shopping during lockdown.

Suggested Citation

  • José González Mínguez & Alberto Urtasun & Miguel Pérez García de Mirasierra, 2020. "Consumption in Spain during the state of alert: an analysis based on payment card spending," Economic Bulletin, Banco de España, issue 3/2020.
  • Handle: RePEc:bde:journl:y:2020:i:09:d:aa:n:22
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    References listed on IDEAS

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    1. Natalie Cox & Peter Ganong & Pascal Noel & Joseph Vavra & Arlene Wong & Diana Farrell & Fiona Greig & Erica Deadman, 2020. "Initial Impacts of the Pandemic on Consumer Behavior: Evidence from Linked Income, Spending, and Savings Data," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 51(2 (Summer), pages 35-82.
    2. Aguilar, Pablo & Ghirelli, Corinna & Pacce, Matías & Urtasun, Alberto, 2021. "Can news help measure economic sentiment? An application in COVID-19 times," Economics Letters, Elsevier, vol. 199(C).
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    RePEc Biblio mentions

    As found on the RePEc Biblio, the curated bibliography for Economics:
    1. > Economics of Welfare > Health Economics > Economics of Pandemics > Specific pandemics > Covid-19 > Economic consequences > Consumption

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    Cited by:

    1. Agnieszka Huterska & Anna Iwona Piotrowska & Joanna Szalacha-Jarmużek, 2021. "Fear of the COVID-19 Pandemic and Social Distancing as Factors Determining the Change in Consumer Payment Behavior at Retail and Service Outlets," Energies, MDPI, vol. 14(14), pages 1-18, July.
    2. Carbó-Valverde, Santiago & Cuadros-Solas, Pedro J. & Rodríguez-Fernández, Francisco & Sánchez-Béjar, José Juan, 2023. "Mobility restrictions and payment choices: The case of the Covid-19 pandemic," Journal of Behavioral and Experimental Finance, Elsevier, vol. 40(C).
    3. Jonker, Nicole & van der Cruijsen, Carin & Bijlsma, Michiel & Bolt, Wilko, 2022. "Pandemic payment patterns," Journal of Banking & Finance, Elsevier, vol. 143(C).
    4. Gerhard Fenz & Helmut Stix, 2021. "Monitoring the economy in real time with the weekly OeNB GDP indicator: background, experience and outlook," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue Q4/20-Q1/, pages 17-40.

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    More about this item

    Keywords

    private consumption; COVID-19; card payments; restrictions on movement; restrictions on activity; lockdown; social distancing; uncertainty.;
    All these keywords.

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth

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