While economic difficulty caused by the pandemic will continue this year, National Retail Federation Chief Economist Jack Kleinhenz said in a press release that the stimulus passed at the end of last year will assist in speeding up the country’s continuing recovery.
Legislation ratified on Dec. 27 will offer single $600 stimulus checks to those who bring in a maximum of $75,000 annually and offers $300 weekly checks for the jobless for nearly three months. Kleinhenz indicated that the new assistance is especially pivotal to low-income families and the unemployed who have experienced difficulty paying their everyday bills in recent months.
“We expect retail sales spending to see a boost from the new round of stimulus,” Kleinhenz said in the release. “Consumers responded quickly to last spring’s stimulus checks, and distribution of the new checks will come at a critical time that will help carry 2020’s momentum into 2021.”
The chief economist’s comments were made in the January edition of the NRF’s Monthly Economic Review, which said that economic activity will probably pick up following the winter months and into the middle of 2021 as coronavirus vaccines enable more activities to resume.
In November, the NRF predicted that holiday sales during November and December would rise between 3.6 percent and 5.2 percent over 2019 to reach a range of $755.3 billion to $766.7 billion outside of eateries, fuel stations and automobile dealers.
“We know this holiday season will be unlike any other, and retailers have planned ahead by investing billions of dollars to ensure the health and safety of their employees and customers,” NRF President and CEO Matthew Shay said in a release at the time. “Consumers have shown they are excited about the holidays and are willing to spend on gifts that lift the spirits of family and friends after such a challenging year.”
Kleinhenz noted at the time that consumers had “experienced a difficult year, but will likely spend more than anyone would have expected just a few months ago.”