This commentary was issued recently by money managers, research firms, and market newsletter writers and has been edited by Barron’s.
U.S. Manufacturing Resurgence?
The Leuthold Group
Aug. 13: Throughout the postwar era, the U.S. economy has been transforming from goods-based to a service-driven economy. However, during the last 30 years, goods have been subtly making a comeback, and they have recently been additionally fueled by the pandemic.
Between 1950-1990, services as a percent of total consumption steadily rose, but that trend has slowed markedly over the past three decades. Indeed, services spending as a share of total consumption is currently unchanged measured back to the start of 2005, and it has risen only slightly since 1991. This ratio will undoubtedly strengthen somewhat as pandemic restrictions ease and more service businesses reopen….