For much of the past two years, the US economy’s extraordinary resilience has revolved around demand for services. That’s been a zombie narrative that’s refused to die a tidy death — perhaps until now.
Despite a cooling in some services spending in early 2023, the category caught a second wind thanks, in part, to Taylor Swift’s Eras Tour and the summer box-office hits of Barbie and Oppenheimer. Now, spending on recreation services is ebbing anew, and central bankers should be thrilled.