The economic recovery in the country had been surging as vaccinations picked up and states opened up more and more. However, with the delta variant spreading quickly, the outlook going forward could be less favorable.
In June, we saw mixed economic signals with increase hiring, wages, and payrolls but also increased unemployment. In July, the effects of delta may be showing up in the economy with retails sales being lower than expected and decreasing by 1.1%.
The fall is partially due to temporary factors like microchip shortages impacting car sales; however, there was also a decline in clothing and sporting goods stores which suggest declining consumer confidence.
The other area of concern is that while spending on services have increased, a decline in consumer confidence due to COVID could lead to another reduction in spending on things like in person dining and entertainment.
However, one interesting shift has been a resurgence for stores thought to be left behind. Since March 2020 the majority of shopping has been online to the benefits of behemoths such as Amazon. This, in turn, required more stores to adapt and shift online, making them more flexible overall and better able to take advantage of consumer shopping tendencies even as things occur in person more and more.
With the constant changes that can impact a business, an experienced legal team can help navigate a difficult time for businesses, particularly with the ever-changing landscape for companies during the current crisis.