More Deflationary Headwinds

Credit conditions are becoming more restrictive as a result of the Fed's rate increases. Consumer credit is a major demand-supporting factor for consumption. Yet, banks are tightening lending requirements for all types of loans, including consumer credit and business loans. Less banks are ready to lend to consumers, which suggests that this year's retail sales will be significantly lower.
 

Because they are still quite expensive, consumers will continue to have to prioritize their needs. 

Retail stocks are now exposed as a result. One of the most cyclical industries is retail, and if growth slows down (as some leading indications suggest it will), the industry will encounter more opposition.