Consumers Cut Discretionary Spending by Half, but Tech Buys Up 50%: Parks

“Record-level unemployment and continuing uncertainty" led consumers to cut discretionary spending 50%, said Parks Associates' David Drury Wednesday. Consumer tech purchases increased during the COVID-19 pandemic, he said. Some 26% of U.S. broadband households bought electronics, and demand is expected to continue into next year and possibly 2022, said the analyst. Strong demand will continue for residential broadband to enable streaming video services and messaging, video calling and virtual meetings, he said. About three-fourths of households subscribe to at least one streaming video service; half to two or more. Some 30% intend to avoid public events and large gatherings into 2021 over concern of exposure, said Drury. Seventy percent believe the economy will need a long time to recover; 23% believe the economy will rebound quickly once social-distancing measures are lifted. About 29% say they are delaying vacations or personal travel at least until next year.