In US product markets, many firms also struggle to meet demand and 2.2 experience disrupted supply chains, largely due to high goods consumption Inventory-to-sales ratios are low… …largely driven by high goods ...while inventories are mostly stable, 0 2. n o i consumption… though many painful exceptions persist s r e High goods consumption persists even as vaccines 1 V 202 r e and easing restrictions allow services to come back b o t c 25 O Retail inventory-to-sales ratio Goods and service consumption (relative to baseline) Inventory (100 = 12/2019) ed t a Wholesale: d 1.8 120 p 100 nondurable u es v i Goods consumption proxy t ec p Retail (excl.auto) s er 1.6 P 50 e v i t 100 u ec x Wholesale: E G 1.4 durable C B 0 . ed v er 80 es r s t 1.2 h g -50 i r l Services l A Retail: auto . p consumption u o r G 1.0 proxy 60 g n -100 i t l 2006 08 10 12 14 16 18 20 12/19 3 6 9 12 3 6 9 u s 1 3 5 7 9 11 1 3 5 7 9 n o C n 2020 2021 o t 2020 2021 s o B y b 1 2 0 2 Strong rebound in demand exacerbates localized bottlenecks in supply chains which have © t h g i r y been strained by pandemic-related production interruptions creating acute pain for some p o 13 C Source: Census, BEA, NBER, BCG