Consumers Are Exhausted

In a stunning Wall Skreet prediction, consumer spending dropped 0.6% in the month of December. The usual suspects of this decreased consumer spending are still very much in play by main stream media. First it was Delta, then it was inflation, then it was Omicron. It’s very clear that consumers have exhausted themselves. Although services spending rose (likely due to healthcare spending amidst coronavirus cases) spending on goods was down 2.6% in the month of December.

Disposable personal income rose steadily through the last quarter of 2021 (except in the month of September). Rising inflation through 2021 didn’t deter consumers, as the critically acclaimed Summer Twenty Fun was essentially just a nonstop party, where money was ultimately a non-factor in our fiscal responsibility. But it is true that all things do come to an end. With the probably ending of the most immaculate bull run in the history of the universe, Americans are attempting to practice more fiscal responsibility (myself included), after racking up heinous cc bills month after month (it goes to the economy).

We’ll be keeping tabs on Personal Consumption Expenditures (PCE) over the months to come, but it’s more likely than not we’ll continue on a downward trend, especially coupled with recent sell-offs that have routed equities.