UBS On-Air: Paul Donovan Daily Audio 'Demand and supply'

US August retail sales data signal consumer demand. On the negative side, employee real earnings are catastrophically negative. On the positive side, consumer balance sheets are unusually strong, earnings data does not capture modern ways of making money (TikTok influencers, etc.), homeowners have a lower cost of living and thus greater spending power than consumer prices suggest, and parts of the economy have much lower inflation than the headline numbers.