2024-04-12 06:00:00 ET
Summary
- The U.S. successfully transitioned once again to a services-driven economy after the global disruption caused by the COVID-19 pandemic led to a shift to a goods-driven economy.
- There are signs of consumer exhaustion, with foot traffic at restaurants declining and consumer packaged goods companies shifting their focus from pricing to volume.
- Increasing advertising and marketing spend, fueled by higher prices at grocery stores, is benefiting technology giants and other firms in the advertising industry, as well as driving investment in AI capabilities.
By Samuel Rines
A little over four years ago, the global economy was suddenly shuttered. Flush with stimulus payments, U.S. consumers found their only consumption outlet was goods. Of course, there was a problem. The reason for the stimulus payments was that the economy was shut down, including factories. The "from the couch" goods boom caused a series of global economic ripples. From toilet paper shortages to counting ships off the coast of California, the world was made radically different overnight, and every economic indicator became instantaneously useless....
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For further details see:
The Handoff To Normal?