Stimulus checks put on hold prompts Americans to cut back on their grocery spending as the economy is still uncertain due to the coronavirus pandemic.

The Wall Street Journal reported that as the weekly additional $600 unemployment checks ended in July, Americans became mindful of their food spending.

The stimulus checks and extra unemployment funding that consumers received during the spring have helped consumer businesses stay open. Because of the COVID-19 pandemic, there have been widespread shutdowns in businesses across the country.

According to analysts, the dip in grocery spending could indicate that other items that are not necessary, such as cars and clothes, will have lower sales. 

According to Walmart Inc. executives, Americans are being cautious about their finances, especially that there is no more stimulus aid, as reported by Fox Business. 

Thus, they will be careful in planning their strategy for the rest of the year, said Walmart U.S. Chief Executive John Furner. He added that they would make sure to observe the changes in the shoppers buying behavior closely.

Tempered Sales Growth

Other retailers are expecting the same, saying that consumer sales growth will continue to be tempered.

Amid the pandemic, businesses such as dining in restaurants and watching live sporting events continue to be disrupted.

According to data, growth in sales has slowed compared to that in July and the previous months. Sales growth for three weeks ending on August 16 was lesser than the two weeks prior, even with no change in grocery pricing and in the average number of people dining out.

This data is proof that the stimulus checks put on hold has affected the consumers' buying behavior.

Further proving this is the decrease of grocery spending in states where unemployment is high such as New York, Illinois, and Nevada. 

As consumers cut down on their spending, retailers are also offering discounts to support consumers' decisions to save their money.

Aside from discounts, grocery stores are holding sales, selling items with low prices in bulks, and offering revamped loyalty programs.  

When Will the Second Stimulus Check Arrive?

According to a CNET.com report, there is no possible date yet on when the stimulus checks will resume as this will depend on Congress. 

While talks were stalled, leaders of both sides have said they are willing to continue with the negotiations. Negotiations could probably resume after the Republican National Convention.

There are two ways to go about it. The lawmakers can pass another coronavirus economic stimulus package or allow standalone legislation for another round of direct payment. 

If lawmakers of the Republican and Democratic agree by early September, both parties can pass a bill immediately after the Labor Day on September 7. Should that happen, the first checks of the second stimulus aid could be sent by late September.

Assuming that lawmakers will be able to do this, the impact of stimulus checks put on hold on consumer growth sales could be eased.

Check these out:

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