Lessons for U.S. Consumer Spending from the SARS Outbreak

davfor

This short report provides perspective regarding the current coronavirus outbreak. The takeaway seems to be that the impact on the economy will probably be fairly limited unless the outbreak becomes substantially more widespread and long lived than the SARS outbreak proved to be.

During the 2003 SARS outbreak, U.S. consumer confidence cratered, durable goods spending fell and spending on air-travel posted what was its biggest decline since 9/11, but it was short-lived as spending rebounded.

https://externalcontent.blob.core.windows.net/pdfs/coronavirus-consumer-20200127.pdf

A second link in case the first one does not work:

https://fxstreet.com/analysis/lessons-for-us-consumer-spending-from-the-sars-outbreak-202001271649

Derf

WSJ said that is what is going on in China now. confidence cratered, durable goods spending falling.
Derf

Sven

Quote from the article below

At the height of the SARS epidemic, the U.S. stock market went into a corrective period. In November 2002, the S&P 500 was trading at 941.8. By March 2003, the S&P 500 nosedived to 788.9 for a drop of 16.2%.

It’s the same story for the Dow. The index tumbled by over 17% between November 2002 and March 2003.

https://ccn.com/new-coronavirus-china-may-ignite-big-stock-market-correction/

If this coronavirus follows the 2003's SARS case, the S&P 500 can have a double digit decline that spans over several months.