Key reason for supply shortages: Americans keep spending

As Americans continue to spend more on goods like electronics, than on services like dining out... all that demand for goods, in turn, is leading to U.S. inflation.

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Shantou ,Guangdong ,China ,Shanghai ,United States ,Thailand ,Long Beach ,California ,United Kingdom ,Hong Kong ,Jiaxing ,Zhejiang ,Chicago ,Illinois ,Thai ,Americans ,America ,American ,British ,Song Wenjie ,Oren Klachkin ,Bindiya Vakil ,Frank Xie ,Los Angeles ,Philip Richardson ,Jeff Moriarty ,Anthony Smith ,Appliance Technology Co ,Ford Motor Co ,Shantou Limei International Ltd ,Federal Reserve ,Gem Art ,Southeast Asia ,Gene Seroka ,Limei International Ltd ,Shoe Zone ,Ap News ,Biden Administration ,Fox News ,Krhd 25 News ,Kxxv 25 News ,Key Reason For Supply Shortages Americans Keep Spending ,Takea Step Back From The Picked Over Store Shelves ,He Stalled Container Ships And The Empty Auto Showrooms ,Nd You Ll Finda Root Cause Of The Shortages Just About Everything Even As Pandemic Has Dragged On ,S Households Flush With Cash From Stimulus Checks ,Ooming Stock Markets And Enlarged Home Equity Have Felt Like Spending Freely Againa Lot Since Consumer Demand Drives Much Of The Us Global Economies ,Igh Demand Has Brought Goods Shortages To The Us And Much Of World Add Fact That Companies Are Ordering Hoarding More Parts Than They Need So Dont Run Out ,Nd You End Up With An Almost Unquenchable Demand That Is Magnifying The Supply Shortages Thats Wherea Big Problem Comes In Suppliers Were Caught So Flat Footed By How Fast Pent Spending Surged Out Of Recession They Wont Likely Be Able To Catch As Long Remains Robust Especially Because Americans ,Till Hunkered Down At Home More Than They Did Before The Pandemic ,Ontinue To Spend More On Goods Electronics ,Furniture ,Appliances ,Porting Goods Than On Services Like Hotels ,Eals Out And Movie Tickets All That Demand For Goods ,N Turn ,S Helping To Accelerate Us Inflation Unless Spending Snaps Sharply Back Services Or Something Else Leads People Stop Buying So Much It Could Take Deep Into 2022 Even 2023 Before Global Supply Chains Regain Some Semblance Of Normalcy Demand Is Completely Skewed ,Aid Bindiya Vakil ,Eo Of Resilinc ,A Consulting Firm That Helps Companies Manage Supply Chains This Has Now Become More And Painful By The Day One Reason People May Eventually Stop Spending So Much Is Everything Simply Costs Consumer Prices In Us Skyrocketed 6 2 Over Past Year As Food ,Gasoline ,Utos And Housing Catapulted Inflation To Its Highest Pace Since 1990 The Laws Of Gravity Suggest That Cumulative Effect So Much Will Eventually Exerta Brake On Spending For Now ,Though ,Anufacturers Foresee No End To Heavy Demand And Beleaguered Supply Chains Or Spiking Inflation Pressuresa Chronic Lack Of Computer Chips Has Forced Ford Motor Co ,For Instance ,O Revamp Its System Of Ordering Parts That Require Long Periods From Order To Delivery Try Address Shortages Highlighted The Just In Time Operating Model Thats Been Prevalent Autos May Not Be Right ,Hau Thai Tang ,Ords Chief Operations And Product Officer ,Old Analysts Smaller Companies ,Zoo ,Ave Felt Compelled To Build Up As Many Supplies They Can So Still Make Products Moriartys Gem Art Near Chicago ,A Family Business For 40 Years ,As Been Stocking Up On Gold ,Ilver And Platinum To Make Necklaces Rings ,Esperate Not To Run Out Of Supplies As Holiday Orders Pick Up We Re Orderinga Lot More Than What Actually Have For Just In Case ,Aid Jeff Moriarty ,He Marketing Manager Evena Normal Post Holiday Shopping Lull ,Hough It Might Help ,Snt Expected To Be Enough Unclog Ports ,Peed Shipping Traffic Or Allow Factories To Replenish Inventories The Baseline Expectation For Improvement Is Around Middle Of 2022 ,Aid Oren Klachkin ,Ead Us Economist For Oxford Economics Buti Think The Risks Of That Happening Later Are Fairly High Though Americans Have Increasingly Ventured Out In Recent Months ,He Balance Between Spending On Goods And Services Remains Skewed The Pent Up Demand That Followed Economic Recovery Is Still Tilted Toward Like Furniture Cars Less Haircuts ,Oncerts And Restaurant Meals Though Services Spending Has Grown In Recent Months ,T Isnt Nearly Enough To Close The Gap Since April 2020 ,Onsumer Spending On Goods Has Jumped 32 Its Now 15 Above Where It Was In February 2020 ,Ust Before The Pandemic Paralyzed Economy Goods Account For Roughly 40 Of Consumer Spending Now ,P From 36 Before The Pandemic Us Factories Have Tried Mightily To Keep Up With Demand Production Rose Nearly 5 Over Past Year ,Ccording To The Federal Reserve ,Espite Periodic Ups And Downs ,Ncluding Disruptions To Auto Production Caused By Chip Shortages Imports Have Narrowed The Gap Between What Americas Consumers Want And Its Factories Can Produce From January Through September This Year ,He Us Imported 23 More Than In The Same Period 2020 September ,Hanks To Surging Imports ,He Us Posteda Record Deficit In Goods Trade Imports Topped Exports By 98 2 Billion Voracious Demand For Has Accelerated As More People Have Become Vaccinated Wealthier Countries Yet Poorer ,Specially In Southeast Asia ,He Spread Of The Delta Variant Forced New Factory Shutdowns In Recent Months And Crimped Supply Chains Again Only Recently Did It Start To Recover At Same Time ,Any Us Workers Have Decided To Quit Jobs That Had Required Frequent Public Contact This Created Shortages Of Unload Ships ,Ransport Goods Or Staff Retail Shops Ports Clogged Up Last Month ,5 Ships Waited Off The California Coast To Be Unloaded At Ports Of Los Angeles And Long Beach Two Weeks Worth Work Average Wait 12 Days That Has Since Worsened 78 ,Ith An Average Wait Of Nearly 17 Days ,Espite Around The Clock Port Operations Beginning In October Before Pandemic ,Hips Had Set Arrival Times And Went Straight Toa Berth For Unloading ,Aid Gene Seroka ,He La Ports Executive Director Now ,Ith Asian Factory Output At Record Highs ,He Port Is Moving Record Levels Of Goods Yet Its Not Enough To Meet The Demand Seroka Doesnt Foresee Shipments Easing Even Next Year Retailers Have Told Him They Plan Use Slower Months January And February If Actually Are Replenish Inventory As With Ports ,Ail Lines Are Moving More Goods Through Early November ,Reight Shipped By Americas Railroads Was Up 7 5 Froma Year Ago Truck Shipments Were 1 In September Yet There Arent Enough Drivers Or Trucks To Move All The Freight China ,Anufacturers Are Struggling With Shipping Delays ,Ontainer Shortages And Cost Increases Shantou Limei International Ltd ,Hich Makes Childrens Toys In The City Of Shantou ,Xpects Sales To Fall 30 This Year Because Of Delays And Costlier Shipping The Most Serious Problem For Us Is Being Unable Deliver Goods On Time Difficulties In Securing Freight Containers ,Aid Frank Xie ,He Companys General Managera Lot Of Things Have Gone Beyond Our Controls And Expectation Philip Richardson ,N American Who Manufactures Loudspeakers In Panyu ,Bear Hong Kong ,Aid Orders Have Increased 400a Key Reason Is Demand From Americans And Europeans ,Ho Have Gone Ona Home Electronics Buying Spree The Price To Ship Goods Us Customers 40 Foot Cargo Container ,Meantime ,Ore Than Tripled In July The Customer Has To Bear It Or Cut Back On Orders ,Ichardson Said Song Wenjie ,Wner Of Hand In Electric Appliance Technology Co ,A Manufacturer Of Home Appliances In Jiaxing ,South Of Shanghai ,Aid That Soaring Cargo Prices Make It Unprofitable To Ship Some Goods The Combination Of Power Outages And Shipping Delays Might Lead Toa 20 Fall In Production This Year ,Ong Said Among European Companies Grappling With Snarled Supply Lines Is Shoe Zone ,A British Retailer That Sources Most Of Its Footwear From China Shipping Container Prices Have Jumped At Least Five Fold In 12 Months ,Aid Anthony Smith ,He Chief Executive This Will Continue To Impact Us For At Leasta Further Six Months Until The Issues Being Experienced In Whole Supply Chain Return More Sensible Levels ,She Said ,Texas ,Texas News ,The Hill ,