The Commerce Department reported retail sales in July increased 1% over June's retail sales. It was the largest increase in over a year and despite the negative voice's prediction of a poor showing. Consumers continue to have faith in the economy and spend their money. In another report the Fiserv Small Business Index of retail sales rose one point in July over June's retail sales and 3.55% over June 2023 retail sales. That index represents over 2 million small business companies so that community enjoys the benefit of consumers spending also.
The positive July report came out two weeks after a stock market sell off when the July's job numbers came out. The pundits did not like the positive job numbers and the market had an unnecessary panic attack fed by the negative voices. And as usual, the market bounced back and recovered in a short period of time.
There has been no consistent data over a period of months for the negative voices to be talking about recession, a consumer spending pull back, massive job losses or runaway unemployment. Inflation has been going down, so far this year at 2.9%. The 30 year home mortgage rate is coming down. For the three and half years under the Biden administration, the economy has performed well and continues to be strong. Consumer confidence is up in the latest poll. The negative voices will never be satisfied with an economy that is working.
The greatest threat to the economy is a prolong continuation of high interest rates. The Feds have to act now and reduce those rates. The economy that has worked so well should not be exposed any longer with outside pressure from the Feds.
This commentary written by Joe Lorio
