The data last week confirms our view of the economy.

The data released last Friday confirms our view of the economy. The consumer is very cautious with spending while the manufacturing sector continues to grow at an above average rate. Retail sales declined 0.7% for the month of December. Sales excluding motor vehicles fell 1.4%. The services sector of personal consumption expenditures represents approximately 41% of Real GDP and is the hardest hit with the pandemic. Retail sales in total reported its third consecutive month of declines after recording three very strong months of recovery in the third quarter. This report will contribute to the low growth Real GDP report due out next week.