Coronavirus didn’t slow down Oklahomans’ wish for fast food

 

A new study  of the COVID-19 impact on Oklahoma’s economy in 2020 shows the obvious—how Oklahomans stopped going to retail and recreation businesses but their consumer spending largely held up during the year. The coronavirus apparently didn’t stop their desire to still order from restaurants.

Chad Wilkerson, branch executive, vice president and economist at the Oklahoma City Branch of the Federal Reserve Bank of Kansas City explained the pandemic affected consumer spending, mobility and obviously—employment.

He found that consumer spending rebounded quickly following the handing out of government stimulus payments and online spending. But the number of Oklahomans who went to retail and recreation establishments steadily dropped in the second half of 2020.

“While spending at restaurants and retail establishments plunged at the onset of the pandemic, many businesses quickly pivoted to online sales and to-go orders,” he said. “Overall accommodation and food service spending in Oklahoma consistently has outperformed the rest of the U.S. throughout the pandemic, and it has returned to pre-COVID levels in recent months.”

The bank’s report showed that despite the spread of the virus and its adverse effects on individuals, consumer spending in Oklahoma largely held up. Over the past year, while many households in Oklahoma lost income due to layoffs, pay cuts, or reduced hours, the federal government supported additional unemployment benefits to replace part of the lost income.

Additionally, direct stimulus payments to individuals of $1,200 in April 2020, then $600 in December 2020, and another $1,400 in March 2021 boosted spending levels in the state. Total consumer spending was back near early 2020 levels during the second half of 2020, and above those levels by January and early February 2021.

While spending at restaurants and retail establishments plunged at the onset of the pandemic, many businesses quickly pivoted to online sales and to-go orders. Accommodation and food service spending in Oklahoma consistently has outperformed the rest of the U.S. throughout the pandemic, although it only returned to pre-COVID levels in recent months.

While arts and entertainment spending has held up better in Oklahoma compared with the U.S. overall, it still is considerably lower than pre-pandemic levels. The arts, entertainment and recreation sector consists of primarily in-person activities and purchases, and thus has seen little improvement over the last nine months amid event cancellations and cautious consumers.

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