Photo: ANP
The spending pattern of American households has shifted more to goods rather than services due to the delta variable of the coronavirus. The number of coronavirus infections surged in August and September, reducing demand for services such as travel, hospitality and leisure. So instead, Americans shifted their spending toward goods.
Consumer spending accounts for about three-quarters of the US economy. The latest figures from the US Department of Commerce showed that sales rose against expectations. The value of total US retail sales rose 0.7 percent last month after rising 0.9 percent in August. On average, experts expected a 0.2 percent drop in retail sales.
The shift is also putting pressure on an already difficult situation in supply chains. Due to the recovery from the crisis, they are already struggling to keep up with the high demand.
