Consumption in the time of Covid-19: Evidence from UK transaction data

Paolo Surico, Känzig, Diego and Hacıoğlu Hoke, Sinem
Authors registered in the RePEc Author Service: Diego Raoul Känzig and Sinem Hacıoğlu Hoke

No 14733, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: Using transaction data from a large Fintech company, we document a decline of 40% to 50% in the spending of British households during the Covid-19 crisis. The fall is concentrated in services such as retail, restaurants and transportation. The initial rise in on-line shopping and groceries purchases has been subsequently reverted. Income reductions have become far more frequent, with a median decline around 30%. The share of borrowers facing financing issues has increased significantly for both secured and unsecured lending. Consumption and income inequality have surged, with the most economically vulnerable groups experiencing the largest percentage decline. Mortgagors and higher earners in London record the most sizable pound change.

Keywords: Real-time indicators; Expenditure; Income; Access to finance (search for similar items in EconPapers)
JEL-codes: D12 E21 G51 (search for similar items in EconPapers)
Date: 2020-05
New Economics Papers: this item is included in nep-mac, nep-ore and nep-pay
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Citations: View citations in EconPapers (47)

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