evidence: Fact 1: Recovery in the demand for services has lagged behind recent business cycles. [...] Pandemic-related health risks significantly dampened demand for face-to-face services, leading to a more than 20 percent decline in real services spending by April 2020. Since early 2021, real spending on services has slowly recovered, and as of July 2022 is above its pre-pandemic level. However, it remains roughly 3 percent below its pre-existing trend; moreover because of the surge in goods spending, the share of total spending on services is 4 percentage points below its average in the decade before the pandemic. [...] View the full report, including the technical appendix and references.