Marielle Segarra, Lindsay Ray, Kristin Schwab discussed on Marketplace
I'm kind result it is Wednesday. Today. The 28th Day of April. Get is always to have you along, everybody. The economic news. Oh, the day today isn't really about Today. President Biden's big speech about his big plans for this economy going to take years, maybe decades to play out. That, of course, is the long term news. Jay Powell, wrapping up the Federal Reserve's two day meeting today, said this about getting back to full strength. We've got a long ways to go and also it's going to be a different economy. We'll call that the medium term news closer to today. We'll get the next dose of data on consumer spending on Friday, and with it a sense of the economy and in particular Spending on services and how it's all coming back Marketplaces. Marielle Segarra made some calls to hear what people are looking for now and in the medium to long term. So before we get too far into this, something you should know on the show. We often talk about retail sales numbers. Those come out monthly and tell us mainly whether people are buying goods which they've done a lot of during the pandemic. Dana Peterson is chief economist of the Conference board. Good spending was very strong people bought cars. They bought appliances. They bought lawn furniture. They bought boats and RVs on Friday, though, we're getting consumer spending numbers, which is different. It's more heavily weighted towards services. Bars, restaurants, hair salons, amusement parks theaters call it the experience economy, which didn't do so well during the pandemic, But as more people are vaccinated, and certainly as economies are reopening That experience will standing will come back. Friday's numbers will give us a sense of how much Peterson says she's expecting the numbers to be very strong and to continue on that path through the summer and probably into next year. But or you, Hef, it's who teaches macro economics at Cornell. Says it's hard to say how long any bump in spending might last. The numbers are a snapshot in time of March. Specifically, when a lot of people were spending their stimulus checks. I'm going to spend differently money I saved over many years. Then I'm going to say a spend effect government check that I actually never counted on and all of a sudden surprised In other words, the way people are spending right now because they've got that fat stimulus check and the sun's out and they got their vaccine and they're feeling hopeful. That's not necessarily gonna last Marielle Segarra for Marketplace, speaking of fat stimulus checks in the sun being out and all that and the hope that it's gonna last allow me to introduce to you the topic of business inventories. Census Bureau reported today that wholesale inventories are going up Those air the businesses that supply retailers stocking up ahead of the sun being out in the fat stimulus checks getting spent marketplaces Justin Oh, has our inventory story today. Wholesalers are basically the middle step in the retail supply chain. They buy goods from manufacturers that they're hoping to sell to retailers, says Tim Fiori, with the Institute for Supply Management, So they're speculating on the future. So wholesale inventory growth is absolutely an optimistic indicator optimistic because wholesalers believe consumers are going to be spending more. That's already starting to happen, says Wells Fargo senior economist Sarah House products are just flying off the shelves as soon as retailers can get their hands on them. How says that's a sign that the economy has plenty of room to grow. Sales could be even better if we could actually get our hands on on the supplies and products that consumers and businesses want. House says Some of those products are stuck in the supply chain right now, because of the congestion that's been clogging up U. S ports. And so we have cargo that sitting and ports waiting to be off, loaded or I'm waiting for a driver for its truck chassis. And so that's getting caught up in the inventory levels that we see. So wholesalers are staying in closer contact with retailers to get a better idea of what they'll need, says Brian Yarbrough, consumer research analyst at Edward Jones. Ah, lot of wholesalers are trying to figure out ways to improve the supply chain. Be more nimble. Be quicker. Yarbrough says wholesalers will ramp up inventory throughout the summer. But at the same time, he says, business is air thinking about the fall and winter and what happens when government relief aid wears off? Okay, so demands really good, but how much of that is demand that's going to stay and how much of that is more stimulus driven? Yarbrough says wholesalers are likely to keep increasing their inventories, but at a pretty slow pace. I'm Justin how for marketplace on Wall Street today a little deflated. You could say we'll have the details when we do the numbers. Hmm. I'm not sure we needed an earnings report to know this. But Starbucks said in its most recent announcement that store traffic is still down from early last year, when things were normal spending per visit, though It's up so much that sales are back to normal. Where they were when things from normal and the company says some of that is thanks to an 18% bump in the number of people who signed up for its loyalty program in the past year, the 90 Day active member rate, which is the preferred metric, I guess for those loyalty programs. Is now for Starbucks 23 million users in the United States. And just because why reinvent the wheel, McDonald's and Wendy's and white cast on a bunch of other fast food places have piloted or have launched loyalty programs off their own load These pandemic MONTHS marketplace Kristin Schwab explains why It seems like everyone on social Media has a hack for something including how to get lots of freebies. Hey, guys. Welcome back to my channel. It's numb birthday. That's youtuber Lindsay Ray. Her gold..