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Economy

New Year, New Stimulus, New Round of Investment and Spending

Source: https://www.yodlee.com/data-analytics/new-year-new-stimulus-new-round-investment-and-spending

On December 29, 2020, the Internal Revenue Service (IRS) began to distribute initial direct deposit payments for the second round of stimulus checks to consumers as part of the U.S. response to the COVID-19 pandemic. The IRS sent check payments beginning the following day, on December 30, with an official payment date of January 4. According to the IRS, most recipients would receive payments via direct deposits. The second round of payments were generally $600 for single individuals and $1,200 for married couples filing a joint tax return. Those with qualifying children should have also received $600 for each child.

According to Envestnet | Yodlee Income and Spending Trends, there was a 51% increase in deposits into securities accounts for those who received the stimulus check within the first 12 days of January 2021 vs. the first 12 days in December 2020. This was observed across all income groups. For those that did not receive the stimulus, there was also an increase in deposits, but only by 28 percent.

Among those with annual incomes of less than $75,000, that received Stimulus monies, deposits into those securities accounts increased by 89% for the same month-to-month comparison (Janaury 2021 vs. December 2020).

Brokerage platforms were beneficiaries of this surge in money movement, including many first-time user deposits to new securities accounts according to Envestnet | Yodlee’s Income and Spending Trends. A first time user is defined as one who has not transacted with the brokerage platform as far back as 2018. Looking at the data on a month-over-month basis again, for the first 12 days of January 2021, there was a 90% increase in deposits to new securities accounts across all income groups. For the lowest income groups (less than$35,000/annually), that percentage was double compared to those that moved funds into new accounts in December 2020.

Besides deposits, Envestnet | Yodlee Income and Spending Trends show that those who received stimulus payments also spent their checks on consumer products. As displayed in the chart below, those with incomes of less than $35,000 who received a stimulus check, spent more on consumer products than those that had not yet received the payment.

To learn more about the data behind this article and what Yodlee has to offer, please reach out to Dylan Curtis at Dylan.Curtis@yodlee.com.

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ForwardKeys is one of the leading travel analytics firms that provides investment firms with alternative and predictive data on the travel industry. Data is offered both on the demand and the offer-side of the aviation market.

Actual Air Reservations is an aggregation of flight bookings made via the Global Distribution Systems. Exclusive agreements make that global travel data is available, including regions that are generally difficult to track. This data contains valuable insights into the profile, behaviour, and impact of events on past, present and future air travellers.

Seat Capacity provides insights into the scheduled flights from 99% of global commercial airlines.

Financial institutions use this data for artificial intelligence and predictive models to forecast the performances of businesses. Combined, the datasets can provide insights into the financial health of businesses operating in the travel and tourism industry. This list contains companies like airlines, airplane leasing companies, oil companies, hotels and travel agencies.

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Data is changing the speed of business. Investors, Corporations, and Governments are buying new, differentiated data to gain visibility make better decisions. Don't fall behind. Let us help.

DATA PROVIDER SPOTLIGHT

ForwardKeys

ForwardKeys is one of the leading travel analytics firms that provides investment firms with alternative and predictive data on the travel industry. Data is offered both on the demand and the offer-side of the aviation market.

Actual Air Reservations is an aggregation of flight bookings made via the Global Distribution Systems. Exclusive agreements make that global travel data is available, including regions that are generally difficult to track. This data contains valuable insights into the profile, behaviour, and impact of events on past, present and future air travellers.

Seat Capacity provides insights into the scheduled flights from 99% of global commercial airlines.

Financial institutions use this data for artificial intelligence and predictive models to forecast the performances of businesses. Combined, the datasets can provide insights into the financial health of businesses operating in the travel and tourism industry. This list contains companies like airlines, airplane leasing companies, oil companies, hotels and travel agencies.