LendingTree Consumer Rebound Study Finds Grocery Doing Well, Arts and Entertainment Ailing

A recent study by LendingTree found that while overall consumer spending in some states has started to rebound since the start of Covid, the recovery is lopsided.

In grocery business, things perhaps never have been better. On the other hand, arts, entertainment and recreation businesses are suffering, as spending in that category at the end of July was down 51.5 percent nationally compared to January. Contrast that with spending at grocery stores, which nationally was up 10.4 percent at the end of July compared to January.

Some key findings:

• Consumer spending in Hawaii was up 6 percent — the highest overall — in July relative to January. Spending at grocery and food stores led the way at 22.1 percent higher.
• Michigan saw the second-largest uptick in consumer spending in July relative to January. LendingTree’s analysis shows that consumer spending was 4.1 percent higher on average relative to the beginning of the year.
• The other states that saw consumer spending increase were Arkansas, West Virginia, Idaho and Kentucky.
• District of Columbia business owners suffered the most. Consumer spending was down 18.2 percent relative to January. Spending was down in each category tracked, except grocery and food stores.
• Small business owners in California are still facing plenty of difficulties. LendingTree’s analysis shows consumer spending in the state was still depressed, sitting 13.6 percent lower in July than it was in January.
• Spending on transportation was also down and not recovering. The average state saw spending decrease by 47.2 percent in this category. No state saw spending increases here.

To view the whole study, click here.