Growing Dry Powder Pool May Boost Economic Recovery, REITs
May 14, 2020 | Calvin Schnure | Nareit
There’s a $2 trillion stimulus fund you haven’t heard about, and it’s growing bigger every day.
Consumers cut spending sharply to avoid social contact at the mall or a restaurant, and as shops and businesses close during the lockdown. The aggregate income of all households has fallen with the record job losses. It’s important to keep in mind, though, that a solid majority of employees are still working and earning income.
Total household income didn’t fall nearly as much as spending, largely because of those who are still employed, working from home or elsewhere, but who cut back on their purchases. Savings have jumped as a result, with the personal saving rate increasing to 13.1% in March, from 7.7% in January. And savings likely increased further in April and early May.
