U.S. Supply Chains & Inflation Report: July 2022
Spending growth faced gathering headwinds in June, as consumers faced with higher-than-expected prices were increasingly inclined to trade down or opt out of purchases. While demand for durable goods and housing had already begun to weaken in May, consumers in June also increasingly resisted price hikes for services, potentially delaying the return to prepandemic spending patterns.
- Spending momentum is fading as inflation tightens its stranglehold on the consumer.
- While durables purchases are the category most impacted by inflation, services spending is also looking increasingly vulnerable.
- Dissipating supply chain pressures for certain items may offer some price relief later this year.
About the authors
Kayla Bruun is a senior economist at decision intelligence company Morning Consult, where she analyzes consumer spending, inflation and household finance trends, leveraging the company’s proprietary high-frequency data.
Prior to joining Morning Consult, Kayla was a key member of the corporate strategy team at telecommunications company SES, where she produced market intelligence and industry analysis of mobility markets.
Kayla also served as an economist at IHS Markit, where she covered global services industries, provided price forecasts, produced written analyses and served as a subject-matter expert on client-facing consulting projects.
Kayla earned a bachelor’s degree in economics from Emory University and an MBA with a certificate in nonmarket strategy from Georgetown University’s McDonough School of Business.
Scott Brave previously worked at Morning Consult in economic analysis.