The pandemic goods binge
Locked-down America bought things, not experiences — then services caught up.
In April 2020 consumer spending collapsed across the board: durable goods to 76% of their January 2020 level, services to 81%. What happened next split in two.
Stuck at home with stimulus checks and nowhere to go, Americans bought things. By March 2021, spending on durable goods like cars, furniture, appliances and electronics was 33% above its pre-pandemic level. Services spending (restaurants, travel, haircuts, concerts) was still slightly below it.
That surge in goods demand hit supply chains built for normal times, and it helped set off the goods inflation of 2021. Then the lines crossed back. Durable goods spending went flat for almost two years, while services caught up as the economy reopened.
Today all three categories are about 45–55% above January 2020 in dollar terms, which includes the inflation along the way. The mix of spending is back to roughly where it started; the binge is over.