Consumers Are Pivoting Spending To Services Like Dining And Travel – The Wall Street Journal

With many tapped out on buying physical goods, economists hope warmer weather and waning infections will kick-start service purchases

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Restaurants stand to benefit as consumer spending shifts from goods to purchasing more services such as travel and dining out.

Photo: Emily Elconin/Bloomberg News

Americans responded to the pandemic with a dramatic shift in spending to goods from services. That now appears to be reversing and should gather steam as the Omicron wave of Covid-19 ebbs, economists say.

Consumers shopped more online in the pandemic, and changed what they bought. Unable to eat out or travel, and with both school and work going remote, they splurged more on things for the home such as furniture and computers. Several rounds of federal stimulus amplified that spending spree.

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