Consumers shift spending to services from big ticket items

Pent up demand for dining out and other entertainment services shifted money away from big ticket items that were popular during the height of the pandemic. Spending was flat over all but money shifted from one thing to another as people started emerging from their homes.

Spending was flat last month as consumers cut back on purchases of big-ticket items and rotated more of their money toward in-person services. Still, this spring shaped up to be a solid one for spending: April expenditures were upwardly revised to a 0.9% increase from a previously reported 0.5% rise. Overall spending in May was well above pre-pandemic levels, with spending on goods up nearly 20% from February 2020 and services down about 1%.

Wall Street Journal