Economies around the world have taken massive hits due to months-long COVID-19 lockdowns. For the U.S., these economic downturns are being felt in the country’s largest cities, where local commerce plummeted in March from normal figures in February.
According to data collected by JPMorgan Chase on credit card transactions of local every day goods and services, San Francisco, Chicago and New York all saw over 15 percent declines year-over-year in local commerce for the month of March. Other large cities like Detroit, Houston and Los Angeles followed closely behind.
The report posits that much of the lost economic activity in each city has been felt in low-income neighborhoods. Other data from the report showed that nearly 12 percent of low-income neighborhoods experienced severe spending declines in March.
Overall, lower-income neighborhoods had a disproportionate share in severe spending cuts, adding to the growing body of evidence suggesting the greater economic shocks of COVID-19 restrictions have been felt by those in or near poverty.
