Consumer Spending is Slowing because of Interest Rates

Retail spending is down for the second month in a row which signals the economy is slowing down. I would argue we are getting closer to a recession, or are already in one. Purchases for big ticket things like vehicles, furniture, and appliances is decreasing because of interest rates increasing. You do not want to be investing in consumer discretionary right now like airlines, car manufacturers, and luxury goods. Even spending on gasoline is down. Recent data is suggesting that Americans are more cautious about purchasing goods, especially if they have to borrow money to do it.

Manufacturing output was down a half percent in March from February. Job openings have declined. The labor market looks to be cooling. The US economy grew in the first quarter. The Federal Reserve Bank of Atlanta estimates the GDP growth for the first quarter was 2.2%. People are getting lower tax returns than last year which is leading to less year over year gains. All the talk of recession is starting to get through to the average American. Get ready for recession, folks.