US consumers are shifting their dollars from merchandise to services like travel, a worrying trend for retailers that benefited from the pandemic spending binge but a promising sign for snarled supply chains and inflation.
For months, economists have been expecting demand for merchandise to wane as Covid fears subside and Americans spend on experiences such as vacations and entertainment. The expectation was that a decline in spending on goods would ameliorate supply-chain pressures and help to tamp down decades-high inflation.
