Turbocharged consumers in US play an instrumental role in Supply Chain Snarls
Bloomberg News reports that amidst the dwindling global supply chain hiccups, which are fueling inflation, very little attention is being paid to the economy’s demand side of the story. This is happening even though the behavior of consumers in the United States and their spending spree habits are playing a vital role in stoking the higher prices as resulting bottlenecks of West Coast ports’ imported goods. Households have gathered more than $2 trillion in savings that are in excess at the time of the coronavirus crisis. Thanks to the lockdown period a phase when the spending was curbed, and the stimulus proceeds from government and rise in housing values and equities. Simultaneously, as per a report from the government Friday, the labor market is showing signs of strengthening, with wages rising and recruitment.
Ready to Spend Card spending in the United States escalated in October. The buying spree which was triggered by the forces mentioned above is a positive side of the economy, underpinning last years’ recovery from the succession. However, too much of these good things strain suppliers as they become overwhelmed and that which leads to a surge in prices. In a signal about just how strong the demand is, Bloomberg News reports that the consumers have continued with their buying spree even though the prices have witnessed a surge. As per data that has been compiled by Bank of America Corp, indicates that spending was high for about 20% from 2019 till last month, consumer confidence improved in October first ever in four months since the retreat of the delta variant, and analysts expect record sales for Apple Inc and Amazon Inc, in the current quarter.
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