While some economic indicators suggest that the recovery remains on track, others show that consumers may be stalling out, and that households and businesses are becoming increasingly pessimistic. The US Federal Reserve will have to respond more nimbly to economic softening than it did to strengthening in 2021.
WASHINGTON, DC – Rapid consumer price inflation in the United States is masking signs of an economic slowdown that could threaten the longevity of current growth. While nominal personal consumption spending grew by 3.4% between October 2021 and March 2022 (the most recent month for which data are available), accounting for higher prices shows that personal consumption spending was flat overall. And inflation-adjusted retail sales look even worse, having been flat since March 2021.
WASHINGTON, DC – Rapid consumer price inflation in the United States is masking signs of an economic slowdown that could threaten the longevity of current growth. While nominal personal consumption spending grew by 3.4% between October 2021 and March 2022 (the most recent month for which data are available), accounting for higher prices shows that personal consumption spending was flat overall. And inflation-adjusted retail sales look even worse, having been flat since March 2021.