How Does Consumer Spending Change During Boom, Recession, and Recovery?
Reed, Steve; Crawford, Malik
[Excerpt] This Beyond the Numbers article compares relative importances based on data collected during three periods that can be characterized roughly as boom, recession, and recovery. The “recovery” era is represented by the current CPI relative importances, which are based on surveys conducted in 2011–2012. These relative importances replaced figures that were based on data collected during 2009–2010, and represent the “recession” period. (While the economy was recovering at least during the latter part of this period, it seems reasonable to expect consumer behavior to reflect recession conditions.) Because the 2007–2008 period was one of transition from boom to recession, we will examine the weights based on 2005–2006 data, as representing spending during a booming economy.
boom; recession; recovery; consumer spending; Consumer Price Index (CPI)