The pandemic changed what Americans spent their money on. And now with years of saving and government money they are spending more, which is one reason inflation is up. But some consumption habits have changed. The figure from the Bureau of Economic Analysis shows what households have been spending their money on. Most of the spending growth was on housing and health care, two big drivers even before the pandemic. Though Americans are still eating more at home than out. They have only recently started buying more clothes and still aren't spending as much on recreational activities. While a return spending is driving some inflation, the economy is by no means back to normal.
Source: Bureau of Economic Analysis
Allison Schrager is a senior fellow at the Manhattan Institute. Follow her on Twitter here.
Interested in real economic insights? Want to stay ahead of the competition? Every Wednesday, e21 delivers a short email that includes e21 exclusive commentary and the latest market news and updates from around the Web. Sign up for the e21 Weekly eBrief.
Photo by lucky-sky/iStock
