US services (and thus services spending) account for 68% of US GDP [2]and 4 out of 5 US jobs. Thus, without spending on services the US economy can barely grow. That much is clear. What is also clear is that pundit after pundit has been lining up to explain how the Q1 economic collapse is to be ignored because it was due to, don't laugh, snow. Snow, which somehow wiped out of $100 billion in growth from initial expectations of Q1 GDP rising by 2.5%. What is certainly clear is that without spending on services in the second quarter, it is impossible for US GDP to hit its much desired 4% "bounceback" GDP print.
All of that is very clear.
What is not at all clear is just where is this services spending spree.
The chart below shows the monthly change in service spending as just reported by the BEA. The two bars comprising two-third of the second quarter are highlighted.
So - can someone please help us find just where is this much-hyped consumer spending spreed is please?
[3]
Source: BEA [4] [4]
