So an important question is how much household spending will continue to support growth into next year as opposed to settling back to pre-pandemic trends, which would be an additional headwind relative to the strong makeup consumption we have seen so far this year.
During the current reopening phase, the surge in demand is hitting some sectors before the supply side has had a chance to catch up. Many businesses shrank in order to survive the pandemic and now may be struggling or moving cautiously to expand capacity. These mismatches are exacerbated in some sectors by idiosyncratic supply disruptions, such as in semiconductors, steel, and lumber.