Samsung Cuts Shipments In Half
Samsung's planned shipments in July have been halved. We will see more manufacturers make similar announcements as the bullwhip crashes the upstream supply chain. https://t.co/Tsc82rQz8x
— Craig Fuller 🛩🚛🇺🇦 (@FreightAlley) June 16, 2022
Food and Energy Strength
Tanker and bulk haul food and energy - two parts of the economy which are experiencing record demand and surges.
— Craig Fuller 🛩🚛🇺🇦 (@FreightAlley) June 16, 2022
Supply Chain Inflation Has Peaked
Same in scrap steel. Utter freefall since April 20th
— Lewis M. Johnson (@TrendsTailRisks) June 16, 2022
Scrap steel in the gutter. Many things headed that way.
Retail Sales Flounder in May With Negative Revisions in April
As noted on June 15, Retail Sales Flounder in May With Negative Revisions in April
Retail sales fell 0.3 percent month over month with inflation adjusted sales down 1.2 percent.
Unfortunately for the Fed this does not include rent, energy, or food.
CPI Weight
- Owners' Equivalent Rent (OER): 23.816%
- Rent of Primary Residence: 7.278%
- Energy 8.295%
- Food: 13.361%
Those four items are 52.75 percent of the CPI. The rent combo alone is over 31 percent of the CPI.
Even if the price of electronics were top fall 25 percent, it would not make a dent in the CPI.
Meanwhile, recession looms. For discussion, please see Recession Watch Update, Where Do Things Stand After the Huge Fed Hike?
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