- The economy is broadly divided into the finance, producer, and consumer sectors.
- With big increases in gas, motor vehicles, and now housing as measured by “owners’ equivalent rent,” the consumer sector is in trouble.
- The next big item to watch for on the consumer side is whether retail spending falters.
- No recession watch, let alone a warning, is warranted yet. But heightened attention also needs to be paid to whether long leading indicators in the financial and producer sectors also begin to falter.
For further details see:
Why Yesterday's CPI Report Was Such A Big Deal