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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.
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Personal Consumption Expenditures Detail 2021-09

Personal Consumption Expenditures 1959-Present

Personal Consumption Expenditures 2021-09

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%.

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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).

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