QQEW - Consumers And COVID: Spending Patterns Adjust To The New Normal

• A temporary boost in durables spending has masked a severe drop in services spending.
• While a temporary boost in durables spending has supported consumer spending overall, services spending - which represents the bulk of consumer spending - continues to suffer.
• If a vaccine is developed and distributed effectively, we would expect spending on services to accelerate.
• Durables spending has benefited from the transition to life with COVID-19, but we expect it to return to more modest levels as furniture and personal computing sales slow from the elevated levels posted initially following the crisis, potentially dragging down overall consumer spending.

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