The impact of Covid-19 on the economy is sharp and sudden, which makes for some dramatic data visualization. I enjoy reading the set of charts showing consumer spending in different categories in the U.S., courtesy of Visual Capitalist.
The designer did a nice job cleaning up the data and building a sequential story line. The spending are grouped by categories such as restaurants and travel, and then sub-categories such as fast food and fine dining.
Spending is presented as year-on-year change, smoothed.
Here is the chart for the General Commerce category:
The visual design is clean and efficient. Even too sparse because one has to keep returning to the top to decipher the key events labelled 1, 2, 3, 4. Also, to find out that the percentages express year-on-year change, the reader must scroll to the bottom, and locate a footnote.
As you move down the page, you will surely make a stop at the Food Delivery category, noting that the routine is broken.
I've featured this device - an element of surprise - before. Remember this Quartz chart that depicts drinking around the world (link).
This chart contains a slight oversight - the red line should be labeled "Takeout" because food delivery is the label for the larger category.
Another surprise is in store for us in the Travel category.
I kept staring at the Cruise line, and how it kept dipping below -100 percent. That seems impossible mathematically - unless these cardholders are receiving more refunds than are making new bookings. Not only must the entire sum of 2019 bookings be wiped out, but the records must also show credits issued to these credit (or debit) cards. It's curious that the same situation did not befall the airlines. I think many readers would have liked to see some text discussing this pattern.
Now, let me put on a data analyst's hat, and describe some thoughts that raced through my head as I read these charts.
Data analysis is hard, especially if you want to convey the meaning of the data.
The charts clearly illustrate the trends but what do the data reveal? The designer adds commentary on each chart. But most of these comments count as "story time." They contain speculation on what might be causing the trend but there isn't additional data or analyses to support the storyline. In the General Commerce category, the 50 to 100 percent jump in all subcategories around late March is attributed to people stockpiling "non-perishable food, hand sanitizer, and toilet paper". That might be true but this interpretation isn't supported by credit or debit card data because those companies do not have details about what consumers purchased, only the total amount charged to the cards. It's a lot more work to solidify these conclusions.
A lot of data do not mean complete or unbiased data.
The data platform provided data on 5 million consumers. We don't know if these 5 million consumers are representative of the 300+ million people in the U.S. Some basic demographic or geographic analysis can help establish the validity. Strictly speaking, I think they have data on 5 million card accounts, not unique individuals. Most Americans use more than one credit or debit cards. It's not likely the data vendor have a full picture of an individual's or a family's spending.
It's also unclear how much of consumer spending is captured in this dataset. Credit and debit cards are only one form of payment.
Data quality tends to get worse.
One thing that drives data analyst nuts. The spending categories are becoming blurrier. In the last decade or so, big business has come to dominate the American economy. Big business, with bipartisan support, has grown by (a) absorbing little guys, and (b) eliminating boundaries between industry sectors. Around me, there is a Walgreens, several Duane Reades, and a RiteAid. They currently have the same owner, and increasingly offer the same selection. In the meantime, Walmart (big box), CVS (pharmacy), Costco (wholesale), etc. all won regulatory relief to carry groceries, fresh foods, toiletries, etc. So, while CVS or Walgreens is classified as a pharmacy, it's not clear that what proportion of the spending there is for medicines. As big business grows, these categories become less and less meaningful.