The U.S. economy is 70% driven by consumer spending. When consumers stop spending the economy shrinks, it is that simple. The U.S. Dept of Commerce has released the May retail sales [pdf DATA HERE], showing a 0.3% drop in retail sales for the month. If you are interested in details, look at Table-2.
The critical point to remember is this sentence extracted from CNBC, “the numbers are not adjusted for inflation, which increased 1% for the month on the headline number and 0.6% excluding food and energy.” Everyone ignores this point, and every MSM economist pretends not to know it.

Retail sales -as measured in units purchased- have been in a contracting position since June of 2021. When the current data shows a drop of -0.3% in May, the actual drop in retail sales is much, much greater. The dept of commerce calculates retail sales in dollars. When prices are 20% higher and sales are low, retailers are selling less stuff (less units) at higher prices. This has been the reality of our economy for several months. This is also why productivity has been declining for more than a year.
If you take the 8.6% inflation rate (far understated) and an aggregate drop in sales of 0.3% (again, far understated as a measure of inflation), that means consumers are spending limited incomes on critical or essential purchases like housing, food, fuel and energy. Consumers are not purchasing durable goods; people are hunkering down.
Yearly retail sales (May ’21 compared to May ’22) are +8.1%. However, yearly retail inflation for the same period is +8.6%. Again, reflecting that less stuff is being purchased inside the economy at higher prices. If the commerce dept was measuring actual units being purchased, we would be seeing massive drops in sales.

Professional political activists, Elizabeth Warren and Bernie Sanders types, within the Interior Dept., Energy Dept., EPA and other regulatory agencies related to the energy economy are in control. Not a single operator within the system looks to the White House or executive office for guidance. They knew they had a short window to carry out the unilateral agenda regardless of damage it does.