The Federal Reserve Bank of San Francisco released a report earlier this month. A total of 88.5% of U.S. consumer spending is on items made in the United States. This means that only 11.5% of spending goes for goods and services produced abroad. What share does “Made in China” items make up? Surprisingly, only 2.7% of consumer spending is on items made in China.
Although goods labeled “Made in China” make up 2.7% of U.S. consumer spending; only 1.2% actually reflects the cost of the imported merchandise. For U.S. companies this represents higher retail and wholesale margins. For the consumer it means for every dollar spent 55 cents goes towards a service produced in the USA.
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