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.