Part 3/10:
Decoupling From Rising Consumer Demand
As evidence continues to emerge linking the slowdown in China's industrial production with American consumer spending, the outlook on retail sales in the U.S. becomes dire. Historical patterns reveal that when consumer demand decreases, industrial production follows suit, leading to a series of economic contractions.
Recent data demonstrates that U.S. retail sales have begun to taper off. In fact, with inflation-adjusted sales declining, predictions suggest that industrial production in the U.S. may soon fall in tandem. The post-pandemic era has brought challenges; for instance, consumers struggling with increased living costs are now curtailing their spending, leading to job losses and reduced working hours across various sectors.