Data collected to supplement the Federal Reserve Board’s seventh annual Survey of Household Economics and Decisionmaking showed that US families were faring better financially in July than in April, but many still faced uncertainty regarding layoffs and prospects for returning to work.
THE SURVEYS
The first of two surveys to monitor changes in financial well-being was conducted in April, at the onset of the pandemic and before most financial relief efforts were in place. The second was conducted in July.
In July, 77% of adults said they were doing at least okay financially, up from 72% in early April, and 75% in October 2019. A Federal Reserve release said this increase likely was because of some people returning to work as well as the availability of assistance programs either from the government or from charitable organizations.
A substantial number of families received one or more forms of financial assistance, and the effects of these programs were apparent in people’s overall financial well-being and ability to cover expenses.
The July survey demonstrated that people appeared better able to handle small financial emergencies than they were in October. Seventy percent of adults said in July that they would be able to pay an unexpected $400 emergency expense entirely by using cash, savings or a credit card paid off at the next statement—an increase from 63% in October.
PROBLEMS PERSIST
While financial assistance programs provided some buffer from economic hardships and some people have returned to their jobs, many others remain out of work.
Fourteen percent of adults reported being laid off since the pandemic began. Among those laid off, 30% said in the July survey that they had returned to their former job, up from 5% in April. An additional 10% said they were working elsewhere and did not expect to return to their old job.
Still, a larger share of laid-off workers expected the layoff to be permanent than in April. In July, 22% of adults who had been laid off said they were not employed and that they did not expect to return to their old jobs, up from 7% in April.
The recent survey also shows that laid-off workers with low incomes were somewhat less likely to have returned to the same job. Twenty-five percent of laid-off workers with family incomes under $40,000 returned to the same job, compared with 39% of laid-off workers with family incomes over $100,000.
Results from the April and July surveys reflected families’ experiences of financial conditions over the initial months of the pandemic’s onset. Yet, financial repercussions from COVID-19 continue to evolve, and the Federal Reserve Board plans to field the complete annual Survey of Household Economics and Decisionmaking in the fourth quarter of 2020 to continue to monitor the economic well-being of US consumers in the months ahead.
CATTLE, BEEF RECAP
Fed cattle trading last week was reported in the Plains at $103 to $104 per cwt on a live basis, up $2 from the previous week. Dressed-basis trading was reported at $162 to $165, per cwt, up $2 to $4.
The USDA choice cutout Monday was up $0.58 per cwt at $216.22, while select was up $1.88 at $205.82. The choice/select spread narrowed to $10.40 from $11.70 with 87 loads of fabricated product and 18 loads of trimmings and grinds sold into the spot market.
The CME Feeder Cattle Index for the seven days ended Friday was at $141.98 per cwt, down $0.21. This compares with Monday’s Sep contract settlement of $141.07 per cwt, up $0.20 and Oct’s settlement of $142.25, down $0.17.