A Huge Change In Personal Spending Helps Explain Supply Chain Bottlenecks
Starting with the onset of the Covid pandemic, consumers switched spending habits from services to goods.
Here's 10 years of the relationship between our consumption of goods and our consumption of services. It explains a lot about why we're experiencing bottlenecks and disruptions. We were simply not prepared for the massive uptick in goods consumption. pic.twitter.com/5bABU3NxeH
— Invictus (@TBPInvictus) November 5, 2021
Personal Consumption Expenditures 1959-Present
As Invictus noted, manufacturers were totally unprepared for this massive shift in spending patterns.
February 2020 vs September 2021
- Services: 10,231 to 10,517
- Goods: 5,555 to 5543
Spending on services since February 2020 is up 2.8%. Spending on goods since February 2020 is up an amazing 21.7%.
The jump in spending on goods is unprecedented dating to 1959.
Moral: Consumers will find a way to spend money no matter what (and government handed plenty of it out in three rounds).
Disclaimer: Riki nema disclaimer.
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