How Does the Weather Affect Spending Patterns?
05 May, 2020
That weather influences the spending patterns of consumers is no real surprise, however now Hana Bank has broken down the consequences into clearer patterns in a written report based on the analysis of credit-card spending in 2018.
The report reveals that shelling out for daily necessities like gasoline and at convenience stores and coffee shops are less afflicted by weather than other goods.
Hairdressers for instance flourish on sunny days since you will find a popular belief that obtaining a perm on rainy days brings about unsatisfactory results. Technological advances must have laid such concerns to rest, but a lot of women still avoid getting perms on rainy days.
Weather also influences investor sentiment. Stocks tend to decline on rainy or snowy days. The Korea Composite Stock Price Index fell 0.26 percent typically through the 66 days in 2018 when weather advisories were issued and typically 0.03 percent on days when there were none.
Trading volume and amounts both declined on days when weather advisories were issued, falling from W6.4 trillion on average to W6 trillion when advisories were issued (US$1=W1,226).
"Many foreign research papers have also confirmed the relationship between weather and investor sentiment," a Hana staffer said. "On sunny days, the gross annual returns at the New York STOCK MARKET averaged at 24 percent, 3 x greater than on cloudy days."
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