The delta variant is raging and the U.S. economy remains in overdrive, leaving us to wonder–what will things look like around the bend? As Q3 takes form, facts in evidence suggest the following trends:
Pent-up consumer demand drives inflation
As it turns out, people have a limit to how much Netflix they can consume. The U.S. consumer has been unleashed with a fury that is unparalleled in history. The U.S. savings rate was trending higher than in nearly four decades.
According to McKinsey, consumers hit a wall in April and started spending their savings at a record pace. 80% of polled millennials indicated they were ready to “indulge”. Brand loyalty has waned significantly during this period, with 40% switching brands–double that of prior periods.
Brands will have to earn loyalty by focusing on the new rules of engagement: environmental, social, governance (as a corporate value), and client experiences. Suddenly, prices matter less.
Yet inflation has not…