Average weekly earnings, adjusted for inflation, fell 0.3% last month on top of a 0.1% decline in January. Over the past year, this important measure of consumers’ buying power is down 0.4%. Another major drag on comsumption can be seen in this chart of the price of gas.
Further diminished discretionary income does not support growth in the US economy. GDP growth is likely to disappoint in Q1.
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I wouldn’t worry about the gas price longer term. It will be a lot less by the US election time in November. A lot less, say 1.40-1.70 less. God help the Republicans, for it appears Darth Vader has ‘won’. He now rules the galaxies.
For now.