Americas Fit-Out Cost Guide 2022

C U S H M A N & WA K E F I E L D

KEY TAKEAWAY While these changes are expected to gradually unwind as consumers rotate back towards spending on services, elevated levels of goods spending will fuel manufacturers and trade flows for the coming years. In the meantime, these patterns impact residential and commercial construction through increased costs and supply chain bottlenecks.

SHIFTING CONSUMER DEMAND During the pandemic, consumer spending has both increased and has shifted from services to goods. In 2019, 35% of consumer spending was spent on consumer goods. However, currently that proportion is approximately 40%. Durable goods increased at a greater pace—from 11% to 18% of spending. Buoyed by government stimulus support, consumer spending on durable goods is 11% above the pre-pandemic trend and 21% higher than in Q4 2019. 1

COMPOSITIONAL CHANGE IN CONSUMER SPENDING PATTERNS Real U.S. Consumer Goods Spending ($USD Tril.)

Durable - Pre-COVID Trend Non-durable - Pre-COVID Trend

Durable - Actual

Non-durable - Actual

4.0

3.5

3.0

2.5

Trillions (USD)

2.0

1.5

Source: U.S. Bureau of Economic Analysis; Moody’s Analytics

3

CUSHMAN & WAKEFIELD