An article in the New York Times today has this amazing chart. (If only we could track Indian data with this level of detail.) An interesting point that seems to emerge is that the American consumer has not REALLY stopped spending - just seemed to move from retail to wholesale! and despite record levels of unemployment, continues to eat and drink outside the home.
Clearly, old habits die hard. A bankrupt America, with high-spending consumers - and a government that continues to fight battles around the world. Prepare for a decade of political upheavals as America seeks to cling to its earlier pole position in the world, while the world starts to reject that role - the move from G8 to G20 is more than just a re-ordering of economic order.
1 comment:
Anand - the American consumer has actually cut spending. Not just that, the savings rate has gone up. Not that it is much to write home about, but at least its in positive territory.
The chart might look like that because it is indexed. Warehouse clubs like Costco and Sam's Club have been gaining market share and have been steadily growing before and after the recession. But growth is on a much smaller base as compared to other grocery and supermarkets.
Interesting that liquor sales continued to uptrend even after the market tanked, in fact spiked up a little. Investors drowning their sorrows?!
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