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.
At least seven people were killed at the airport, many fell to their deaths as they clung to the outside of U.S. C-17 transport planes. Horrific videos have surfaced showing desperation amid the humanitarian crisis. The AFP is reporting:
People keep sending me emails about a Wall St Journal article [
The AP is reporting that emergency evacuations have sped up the timeline to avoid the most embarrassing optics for the Biden administration. An additional 1,000 troops from the 82nd Airborne are en-route to support the previously announced 3,000 U.S. troops handling the evacuation. That is a total of 4,000 new military troops sent to Kabul to support the previous 1,000. Keep in mind the original Afghan withdrawal was 2,500 troops in total.