Kaplan: Consumers ‘still spending’, but shifts mean risks to service sector

(Reuters) - Economic data show "consumers are still spending," though shifts in the patterns of consumption mean lower income workers in some sectors may face uncertain times ahead, Dallas Federal

August 14, 2020

(Reuters) – Economic data show “consumers are still spending,” though shifts in the patterns of consumption mean lower income workers in some sectors may face uncertain times ahead, Dallas Federal Reserve bank president Robert Kaplan said on Friday.

Unemployment and other benefits authorized under the CARES Act have “helped make our economic statistics somewhat better” in recent months, Kaplan said in online remarks to a Dallas business group, that followed the release of data showing retail sales increased 1.2% in June. But for those unemployed in hard hit industries like food service “I am very concerned how quickly they will be able to get back to work, if they have to shift industries how long that will take…Not only will you not have a job, will you be able to make ends meet?” as unemployment and other benefits expire.

(Reporting by Howard Schneider, Editing by Franklin Paul)