Retail sales fell sharply in July, as consumers grew wary of the delta coronavirus variant and inflation, the Census Bureau reported on Tuesday. Economists had expected a dip from June’s revised 0.7% gain. The delta variant has thrown a wrench into what was otherwise a robust recovery from the pandemic, with back-to-back quarters of annual growth in gross domestic product above 6%. However, rising prices for many goods and services have dampened the enthusiasm of consumers. Jonathan Silver, founder & CEO of Affinity Solutions, which tracks millions of credit and debit card users in real time, says consumers increased their online purchases by 3% during the last month, the most significant increase since March when federal stimulus payments were sent out. “July retail sales provide a first true look at the impact of the Delta variant, and while it is likely too soon to tell, it appears to be having some impact given the results remain relatively flat for the second straight month,” Silver says. Despite the dip, sales of clothing and accessories increased 43.4% from a year ago, while sales at eating and drinking establishments were up 38.4% from July 2020. For the month, the largest drop came in sales of vehicles and building materials, two sectors that have been hit hard by supply chain disruptions. The reading follows mixed news on the mood of consumers. On Friday, the University of Michigan released its monthly consumer sentiment index, which recorded a sharp 13.5% decline in early August, the largest drop since April 2020, when the economy was shut down due to the coronavirus and during the Great Recession in 2008. Nick Note: DO not let them shit you. The drop in Retails Sales Excluding automobiles declined 0.4% a big number. This is a direct result of the Delta slow down. Right now its not devastating the economy… give it time because stupid is running wild at the summer cluster fucks. And after 6 months vaccines are pretty much useless. The US is way behind the power curve on the 3rd shot for its populations. The powers that be do not see what is coming. just yet. And do not forget the FED fucked them selves royally. As the economy shucks shut they will raise rates and they will panic slamming on the breaks as inflation soon will be our of control. The fun is about to begin.