Retail sales fall 0.6% as consumers see inflation eroding buying power
Only 8% of consumers believe their incomes will grow faster than inflation in the current year, a 10 percentage point decline from December 2024, according to a University of Michigan survey.
Only 8% of consumers believe their incomes will grow faster than inflation in the current year, a 10 percentage point decline from December 2024, according to a University of Michigan survey.
BELLINGS Intelligence Score: 65
Why it matters
The 0.6% decline in retail sales combined with consumer sentiment showing sharply reduced expectations for income growth relative to inflation signals a meaningful shift in economic conditions that could influence Federal Reserve policy and credit market dynamics.
Sources
CFO Dive
Retail sales fall 0.6% as consumers see inflation eroding buying power
Only 8% of consumers believe their incomes will grow faster than inflation in the current year, a 10 percentage point decline from December 2024, according to a University of Michigan survey.