Wednesday, August 12, 2015

Household Spending Expectations Crash.......ANOTHER PESKY FACT!

Household Spending Expectations Crash

When adjusting for household inflation expectations, which have been relatively flat if modestly declining around 3%, real spending intentions, when adjusted for inflation, just crashed to a barely positive 0.5%, down over 60% from the prior month. This too was the lowest print in series history.

In an economy where 70% of the GDP is in the hands of consumer spending, a collapse in spending intentions to multi-year low levels means just one thing: recession.

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