Economics

Producers Caught Flat-Footed as U.S. Consumer Demand Runs Hot

Large inventory drawdown played big role in 2Q GDP miss
Bottlenecks and shortages may be more persistent than expected

Parked trucks at the Port of Oakland. Shipping delays have led to drawdowns in inventories. — Parked trucks at the Port of Oakland. Shipping delays have led to drawdowns in inventories.Photographer: David Paul Morris/Bloomberg

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By Vince Golle and Reade Pickert

July 31, 2021 at 12:30 PM UTC

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Producers couldn’t keep up with supercharged consumer demand in the U.S. last quarter, and it’s unclear when supply constraints will ease.