Why is this great deleveraging important? It provides plenty of ammunition for economic growth when the uncertainties surrounding COVID diminish. Today, companies are flush with cash, expenses continue to run below “normal,” and debt has been paid down. Expenses such as marketing, travel, training and development, fleet expenses and entertainment all plummeted. While the PPP loans provided support for revenue shortfalls and supported employment levels, non-labor expenses dropped materially. The PPP loans allowed companies to remain solvent while adjusting to the new COVID world. ![]() Most significantly, the act created the Paycheck Protection Program that provided loans ($350 billion, mostly forgiven) to small businesses. By Darlene Marshall While you can’t control your experiences, you can control your explanations. Scott Fitzgerald wrote that the test of a first-rate. The original CARES Act provided a material safety net for companies of all sizes. The fact that things are scary, the fact that there is hope. On the corporate front, a similar deleveraging has occurred. Many consumers took the COVID lockdown as an opportunity to pay down their debt credit card, home equity and mortgage balances all declined significantly. The personal savings rate skyrocketed to 35% during the initial COVID lockdown and still hovers around 10%. Is There a Place for Pessimism Pessimism can. That adjustment resulted in a great deleveraging of consumer and corporate balance sheets. Its about finding a healthy balance of positive and realistic thinking. Support quality journalism and subscribe to Business Standard.As a result of our collective COVID experience, consumers and companies were forced to adjust their behavior. Your support through more subscriptions can help us practise the journalism to which we are committed. We believe in free, fair and credible journalism. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.Īs we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. ![]() Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. (Only the headline and picture of this report may have been reworked by the Business Standard staff the rest of the content is auto-generated from a syndicated feed.)īusiness Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. " Indian consumers are showing a propensity to save more as the immediate future seems uncertain," Doctor said. Porus Doctor, Partner and Consumer Industry Leader, DTTILLP, said that the first three months of 2022 have been an adventurous roller-coaster ride with Indians witnessing the third wave of COVID-19 (Omicron variant), leading to a surge in prices of everyday items and supply chain disruptions. With corporate India returning to "business as usual" and travel restrictions gradually easing, Indians have resumed their business travels, it added.Īccording to the report, about 83 per cent of consumers are likely to travel for business within the next three months.Įxpressing positive sentiments, the majority of the consumers have stated that they are optimistic about their financial situations within the next three years as workplaces are opening and COVID-19 cases are decreasing. "The analysis indicates a ray of positivity amongst consumers, who are now cautiously balancing their happiness and spending and saving more for the future," the report noted. However, given that we likely still have a long road to recovery ahead of us, careful, bottom-up credit and manager selection are key, both to selecting the. The consumers surveyed are planning to spend a large share of their wallets on personal care and clothing, recreation, entertainment and leisure travel, followed by electronics and home furnishings and restaurants, it said. Indian consumers are prioritising shopping, recreational and entertainment activities, according to the Deloitte Consumer Tracker report. ![]() Indian consumers are showing cautious optimism and balancing non-discretionary spending as they are saving more for the future, according to a report.
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