Consumer Spending: A Beacon of Hope for Economic Revival
Consumer confidence has already raced to pre-pandemic levels across most economies.
This increase is underpinned by five major factors: (1) improved public health led by vaccination; (2) improving economic activity supported by easing of restrictions; (3) improving labour market conditions; (4) a pile-up of excess savings during the pandemic; and (5) the wealth effect led by robust asset appreciation.
The latest real GDP readings displayed a positive trajectory.
This includes Argentina, Australia, Brazil, China, France, India, South Korea and the US.
The employment rate has already crossed pre-pandemic levels in some countries.
An improvement in public health will be critical.
This and the perceived stability of future income can unlock sizeable pent-up demand as households draw down on excess savings.
Dr. Arun Singh Global Chief Economist Dun & Bradstreet
Dr. Arun Singh has worked across global quantitative and qualitative economic research, econometric modelling and commodity and industry research for the past two decades. He has provided strategic advice and expertise to aid decision making within various government and private organizations. Arun's ability to connect economic insight and data and explain business implications has led to him becoming a trusted advisor and expert for media, government and clients alike.