Coronavirus Fears Surge Back to 2020 Levels, Putting Recovery at Risk

The share of Americans who say they are extremely worried about the coronavirus swelled in August, according to the lastest poll from the Associated Press-NORC Center for Public Affairs Research.

The percent who said they are extremely worried climbed from ten percent in May and June to 14 percent in July. In August, it soared to 22 percent.

The share who said they are very worried climbed from 11 percent in June to 13 percent in July. In August, this jumped to 19 percent.

Combined, 41 percent say they are extremely or very worried, the highest percentage since January and in line with pre-vaccine level of public fear.

An additional 29 percent say they are somewhat worried, up two points from a month ago.

The share saying they are not worried at all fell from 20 percent in June to 16 percent in July to nine percent in August. The “not too worried” share has declined from a high of 34 in June to 21 percent in August.

The latest poll numbers come from a survey taken between August 12 and August 16.

Rising fear of the virus is likely to send the economy sputtering. Bank of America economists wrote in a note Friday that consumer behavior was shifting in response to the rise in infections due to the Delta variant.

The bank’s credit and debit card data show that leisure services spending—defines as spending on airfare, lodging, cruises, restaurants/bars and entertainment—has been slipping since the first week of July, when coronavirus fear was at a much lower level. At this extremely elevated level, it is likely that the decline in spending on face-to-face services and leisure activities will accelerate.

 

The University of Michigan Consumer Sentiment index plunged in early August by 11 points, the biggest drop in over 20 years.