New data from the Commerce Department has exposed the painful reality of President Biden’s economic policies according to a new report out from Bloomberg.
American shoppers are feeling the pinch, with retail sales barely moving in May and previous months’ numbers being revised down.
This worrying trend highlights the growing money troubles faced by individuals and families across the country, thanks to out-of-control inflation and misguided economic policies.
In May, retail purchases only rose by a measly 0.1%, after a 0.2% drop the month before (which was even worse than initially reported). Even when you take out gas sales, growth was still sluggish at 0.3%.
Out of the 13 categories the Commerce Department looks at, five of them saw drops in sales.
Small businesses forced to close under the devastating inflation of #Bidenomics.
“$30 cheeseburger is coming soon!” pic.twitter.com/zkczwI5PNp
— NRCC (@NRCC) June 17, 2024
Paul Ashworth, a top economist at Capital Economics, said, “With services spending slowing down recently and consumer confidence tanking again, maybe households aren’t as resilient to higher interest rates as we thought.”
The consequences of Bidenomics are becoming clearer by the day.
Shoppers are tightening their belts as inflation refuses to quit, the job market cools off, and signs of money stress start to show.
Even though the Federal Reserve kept rates steady last week, the future looks shaky as the economy shows signs of weakness.
Big banks like Morgan Stanley and Oxford Economics have cut their predictions for economic growth, warning that the risks are piling up.
Stephen Stanley, chief economist at Santander US Capital Markets, said, “[M]ost consumer spending happens in services, not retail sales. But these results line up with my view that shoppers are about to hit a major slowdown.”
Overall prices have risen by over 20% since Biden took office. Hardworking Americans are struggling to simply survive as Bidenomics continues to drain our wallets.
This should never be happening in America. pic.twitter.com/OuIopfk2aZ
— Rep. Wesley Hunt Press Office (@RepWPH) June 18, 2024
The dip in spending at restaurants and bars, the only service-sector category in the report, shows just how much tighter budgets are affecting consumers.
Economists at Bloomberg pointed out, “Spending on services has been a big driver of growth. Seeing it drop on a holiday weekend like Memorial Day suggests folks are really feeling the squeeze.”
As households struggle with more expensive debt and rising late payments, it’s taking a toll on how people feel about the economy.
While separate data showed a small uptick in factory output in May, economists at Wells Fargo warned against seeing this as a sign of lasting strength.
They said, “It’s a good thing for the industrial sector, but it’s hard to see this as the start of a solid recovery. The sector is facing a lot of headwinds that will keep growth in check.”
As the country deals with the fallout of Bidenomics and runaway inflation, it’s becoming crystal clear that American shoppers are paying the price for these misguided policies.
The stalling retail sales are a wake-up call that the road to economic recovery will be bumpy, with more challenges likely ahead before things start to look up.
The only real solution is for the American people to give the Biden administration and Democrats in Congress and across the nation the boot this November.
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If they don’t, the strain on consumers and the economy will only get worse in the months and years ahead.
