Retail Sales Have Rolled Over

US economic growth is largely consumption driven. The charts below clearly illustrate that consumption peaked in late 2010 to early 2011. Falling consumption means slowing economic growth, and slowing economic growth means lower federal receipts while outlays remain at record levels at the federal level. In other words, cries of “save me” from an increasing number of US households and further pressure on USA, Inc.

Real or CPI-Adjusted Retail Sales (RRS) and YOY Change


Gold-Adjusted Retail Sales (RSGLDR) and YOY Change


Headline: US retail sales show first fall in 11 months

US retail sales fell in May for the first time in nearly a year as supply constraints curtailed sales of new cars and consumers remained generally cautious.

Separately, higher fuel costs lifted producer prices, but the increase was much slower than in recent months.

Retail sales were 0.2 per cent lower in May, the US commerce department said, following April’s revised 0.3 per cent rise. The decline was less steep than the 0.5 per cent drop expected by economists polled by Bloomberg, but was the first monthly fall in sales since June 2010. On an yearly basis, sales rose 7.7 per cent.

Source: ft.com