Services over stuff

At 67%, consumer spending is the largest contributor to US GDP. Consumer spending can be categorized into durable goods, nondurable goods and services, accounting for 7%, 14% and 46% of US GDP, respectively. In the last few quarters, spending on services has been outgrowing durable and nondurable goods. Breaking it down further, major categories within services include housing, health care, travel and financial services. In the first quarter of 2024, health care and financial services were the main contributors within the services category. Growth in goods picked up in the second half of 2023 but stalled in the first quarter of this year.

Source: US Bureau of Economic Analysis, April 2024.