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Wednesday, July 8, 2020 - 16:56

MNI POLICY: 35% of US Households Expect Income Loss in Next 4W


By Brooke Migdon

WASHINGTON (MNI) - More than one-third of U.S. households anticipate a loss in employment income in the next four weeks, led by deteriorating sentiment in the South and West following an uptick in Covid-19 cases that is triggering new businesses shutdowns.

Approximately 35% of households expect to lose sources of income in the latest Census Bureau Household Pulse Survey, reflecting data from 250 million households across the U.S. from June 25-30. That's up from the prior week's 32% that was the first weekly increase since data collection began in late April. Expected loss of income had been steadily declining since peaking at 38% in the survey's first week, which collected data from April 23-May 5.

Households in the Sunbelt, the southern tier of the U.S. including parts of California and Nevada, reported some of the highest rates of expected income loss.

Nearly 45% of households in Nevada anticipate losing income in the next month, according to the survey published Wednesday. Roughly 43% of households in Texas, Florida and California also expect to lose sources of income next month, up from less than 40% in the previous week.

--BARS CLOSING AGAIN

Texas Governor Greg Abbott ordered bars to close for a second time and restricted restaurant capacity to 50% on June 26 following a surge in new Covid-19 cases. Florida's Ron DeSantis also instructed bars to close again on June 26 and California Governor Gavin Newsom last week partially reversed the state's re-opening.

Southern states were among the first to re-open, with some stay-at-home orders expiring in late April. Arizona also reversed its re-opening in the final week of June, and 34% of its households expect to lose income in the next month, up from 30% in the previous week.

Arizona, Texas, Florida, and California account for 30% of the U.S. population.

At least 15 more states have either paused or reversed their reopening plans, citing concerns over a second Covid-19 outbreak.

--MNI Washington Bureau; +1 202 371 2121; email: brooke.migdon@marketnews.com

[TOPICS: MAUDS$,M$U$$$]

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