Recessions affect consumer spending unevenly. In most categories, individuals reduce their spending, but in a few categories they actually increase it. A recent McKinsey analysis of consumer spending during the 1990-91 and 2001-02 downturns shows that during these periods U.S. consumers spent less on amenities such as restaurant meals, personal-care products and services, apparel, and entertainment. But they spent more on groceries and reading materials — both of which substituted for more expensive options — as well as on less discretionary items like insurance and health care. Spending on education showed the biggest increase.
This site uses Akismet to reduce spam. Learn how your comment data is processed.