Phase transitions and pandemic consumer behavior

By Blu Putnam, Chief Economist & Erik Norland, Senior Economist, CME Group

How the Pandemic Could Reshape Consumer and Business Behavior

• Businesses might diversify crucial supply-line networks post-pandemic.
• Individual savings rate might rise, companies could retain more cash.
• Online shopping, home deliveries could rise over in-store business.
• Business travel could be trimmed, working from home could increase.

Phase Transitions and Policy Responses

• Fiscal and monetary measures seek to contain economic damage.
• Next phase is to assess severity of financial distress, make adjustments.
• The rebuilding phase will likely require additional support programs.
• State and local governments could require more federal assistance.