The question on everyone's mind is, of course, how these turbulent economic conditions may affect them.
Here are three things that are likely to remain higher than usual for the foreseeable future:
1. Unemployment. Looking to get a better job? With over 40 million Americans filing for unemployment during the pandemic and the real jobless rate purported to be at a staggering 24%, you might be better waiting out the economic storm.
While the number of weekly jobless claims has dropped eight straight weeks since topping out at 6.9 million in April, it still marks 10 consecutive weeks with claims exceeding 2 million. To put this in perspective, before the coronovirus prompted the shutdown of businesses across the U.S., weekly U.S. unemployment claims had averaged 218,000.
Needless to say, those applying for the limited number of openings available will face stiff competition.
2. Grocery store prices. If you find yourself waiting for food prices at your local grocery store to drop, don't hold your breath.
U.S. consumers have seen the costs of eggs, potatoes, and especially meat climb as the coronavirus has disrupted distribution networks and processing plants across the country.
All told, the cost of food bought to eat at home surged by the most in 46 years. Meat prices in particular could remain high as slaughterhouses struggle to maintain productivity while implementing measures designed to keep workers healthy.
If you're looking to save on groceries, you'd be wise to shop around, even though you're bound to encounter steep prices across the board for meat and produce right now -- and, yes, that even includes Amazon.
3. Money in people's savings accounts. Building up your savings is likely a top priority for you in these uncertain times, and you're certainly not alone.
With consumers looking to retrench amid a precarious climate of layoffs and higher grocery bills, American spending dropped by $1.89 trillion in April -- a whopping 13.6% decrease. Not since September 2014, a few years after coming out of the Great Recession, has spending been so low.
Savings as a percentage of disposable income skyrocketed to 33% in April, up from some 13% in March.
As many people return to or find work, it's going to take time for consumers to go back to their regular spending habits. It's safe to say that after witnessing the devastation wrought upon the economy by COVID-19, many may never again be freewheeling shoppers.
Given that roughly two-thirds of the economy is driven by consumer spending, the recovery is heavily dependent on us.
But until you feel comfortable enough to make discretionary purchases -- from restaurant meals to movie tickets -- saving your money and living below your means is a prudent strategy.
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