Change the rules….change the spending patterns.
As public health restrictions begin to ease as vaccination levels increase and the number of new COVID cases recede consumers are also changing their habits. We can get a near real-time snapshot of this activity through the activity in bank accounts and credit cards. And what they’re showing is July started off with a flurry of activity.
Spending on wardrobes exploded as the bar and restaurant scene became a ‘thing’ again. Expenditures are running considerably higher than they were in the last full month prior to the pandemic. This is part of a larger trend which is based on the re-opening of the service sector.
Just as people were gearing up to hit the bars, they were also shifting their spending from consumer goods to more services, so all forms of entertainment outside the home were seeing renewed traffic. Even travel is gaining momentum but it still has a long way to go to get back to pre-pandemic conditions.
But the broader story is that consumer spending is well ahead of pre-pandemic levels as consumers are roaring back into action.