The U.S. Census Department releases retail sales data today showing a strong contraction in consumer spending for July [MSM LINK]. The out-of-touch financial pundits were looking for a 0.3% decline; however, the drop was four times greater with a contraction of 1.1% in spending.
“The slide in retail sales comes after Friday’s preliminary consumer sentiment report from the University of Michigan showed one of the largest drops on record, leading some strategists and economists to warn of downside risk to the sales data.” (link)
This should not be unexpected for those who read here. Massive price inflation on essential goods is eating up wages. Food, fuel and energy price increases are changing consumer spending habits. Non-essential purchases have stopped….. they haven’t slowed, they have stopped. ←Emphasize this because it is not showing up yet in the data lag.
The data reflects that auto sales were the primary contributor to the decline in spending (-4.3%). This should make sense to people because auto purchases are the largest general consumer purchase outside of home purchasing.
When purchase decisions are made by families; and food and fuel prices are skyrocketing; replacing a vehicle is not essential. Auto sales are a key indicator of consumer confidence and income.
Overall inflation is the primary driver. Real wages are declining (wages – inflation), and disposable income is dropping quickly. Americans need to start talking very deliberately about what is about to happen. CTH predicted this and has been walking through the visible outcomes as each set of new data surfaces {SEARCH BOX}. Nothing happening right now is unforeseen or not easily understandable.


As a result of a larger awakening; which must be maintained with
…Now we get the new COVID narrative – A “Lambda Variant” that is not only infectious and transmissible regardless of vaccinated status (just like Delta), but the Lambda Variant is also resistant to any antiviral immunity, meaning the COVID-19 vaccine doesn’t work against it.
