Daylight time savings means you will be grumbling over your sleep cycle and leaving for work in the dark, for the start at least. But there is another aspect of your life that will also affect you that you didn’t even realize. That would be your wallet.
A study has been released by JP Morgan Chase Institute that discovered that switching back to standard time is found to be related to a reduction in spending. Depending on where you live, it ranges from 2.2% to 4.9%.
Daylight saving time begins in spring time, where clocks are pushed an hour forward. It send in the fall season, where we set the clocks back to standard time.
The savings time policy affect more than 300 million Americans. One of the potential advantages of the saving time is that is creates an additional hour where Americans can spend money in. This helps the economy as well as small businesses succeed more.
JPMorgan decided to test this theory by comparing spending patterns in two separate cities. The two cities they chose were Phoenix and Los Angeles. They compared the 30 days prior to daylight saving time, and 30 days after. Los Angeles had an extra hour after work, and Phoenix remained the same as they do not follow the daylight saving time.
Despite the hypothesis of the study that the extra hour would increase spending, this was not found to be true. They found that there is only a very slight increase in spending in the spring time, and the drop in fall is much more significant.
Daily spending drops a great deal during the week in Los Angeles in comparison to the weekend. Supermarkets were seen to be the most highly affected, losing nearly 6% at the end of daily saving time.
The researchers found that spending patterns really varied depending on the location. For example, San Diego was shown to have an increase at the start of daily saving time and a decrease at the end. In Denver, however, the opposite was found.
JPMorgan researchers also found that the spending effects varied depending on geography. In San Diego, for example, the authors found a relative increase of 2.9% at the beginning of DST and a relative decrease of 2.2% at the end of DST. In Denver, the switch was associated relative increase at the start of DST was 0.8%, while the relative decrease at the end was 4.9%.