Sep 05 2023 7 mins 6
The services sector continues to drive growth in the global economy, despite rising interest rates. Spending on services is being driven by savings built up during the Covid era, and pent-up demand for areas such as travel and leisure activities. Along with resilient labour markets, this has continued to push up consumption.
In the near-term, there is no sign of this stopping. Unemployment is still low and consumers still have money to spend. Phenomenon such as Swiftonomics – the blockbusting billion dollar tour by Taylor Swift – have shown the consumer’s ongoing propensity to spend.
Manufacturing, however, remains on its knees, with little hope of a revival in the short-term. Nevertheless, CEOs may be encouraged by the recent equity market rally to revive investment in production, allowing the sector to recover.
