Jul
22

Role Reversal

In past recessions, it has been manufacturing that drove the economy into recession, as households stopped buying cars, houses, and refrigerators while services like eating out and going to movies ameliorated the situation. This recession, it is reversed. Service activity has largely collapsed while manufacturing is quickly recovering. This is because of stepped up household purchases of big-ticket items like cars, houses, furniture, home renovation items, and sports equipment.

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