Personal Consumption; Necessities Reign Supreme

When forced to make a decision, consumers have shifted their consumption from goods (durable / nondurable) to services (see BEA - Table 1):



Looking deeper... it can be broken down between those items that are or are not necessities. In other words, consumers are likely passing on large purchases in order to maintain their lifestyles (i.e. clothing and recreation are close to flat), while they have actually increased real spending year to year on services like medical care and the upkeep of their homes.



Source: BEA