The American Consumer Is 'Starting to Freak out,' Spending Drops 3 out of Last 4 Months
By Bob Hoge | 4:45 PM on January 30, 2023
Although President Biden keeps insisting his economic programs are working great, there are plenty of troublesome signs indicating otherwise, including the all-important rate of consumer spending. Simple rule: if people are buying more things, it generally means they feel good about the state of their finances and the economy.
When folks tighten their belts, however, it’s because they either simply don’t have enough money to purchase more than the essentials, or they’re holding on to their wallets because they fear for the future.
Consumer spending is often known as the “engine of the economy”—and it’s out of gas. The Wall Street Journal reports that Americans are “starting to freak out”:
Retail purchases have fallen in three of the past four months. Spending on services, including rent, haircuts and the bulk of bills, was flat in December, after adjusting for inflation, the worst monthly reading in nearly a year. Sales of existing homes in the U.S. fell last year to their lowest level since 2014 as mortgage rates rose. The auto industry posted its worst sales year in more than a decade.
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https://redstate.com/bobhoge/2023/01/30/the-american-consumer-is-starting-to-freak-out-spending-drops-3-out-of-4-months-n696277