Is strong services spending here to stay?

We think that the shift in the shape of consumer spending over the past few years away from spending on goods towards spending on services is here to stay. While the recent strength in spending on housing rents may not persist, over the next couple of years a combination of a post-pandemic shift towards holidays, recreational services, private healthcare and education as well as a greater use of technology should continue to support stronger services demand and drive above-consensus overall consumer spending growth.