- The rebound in consumer participation is an important part of the growth story we’ve seen in 2021, with accommodative monetary and fiscal policies also playing an important role.
- Going forward, we see these forces continuing to drive growth - albeit with some moderation - as consumers are in a strong place to spend and policy accommodation seems likely to continue over the next 12-18 months.
- As lockdowns ended, we saw a lot of pent-up consumer demand unleashed. While the Delta variant adds risks to the outlook, overall we see some healthy tailwinds for the US consumer.
- Inflationis the other side of the coin. Economic activity essentially came to a haltwith COVID-19-related shutdowns; restart of activity created supply chainbottlenecks and pockets of inflationary heat.
For further details see:
On Post-Pandemic Growth And Inflation, Equity Prospects And Income-Seeking Strategies