7 Graphs for the Week of August 19, 2022

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Potential Slowdown in Inflation? 📈

Graig Fuller @FreightAlley predicts container rates from China to West Coast will drop to under 4,000 by November. That would be more than an 80% decline from their peak of $20,586 a year ago. 

The Cass Freight Report, which tracks freight moved by companies in the North American market, showed a leveling of YOY increases. 

However, while rates are still high, month-to-month variation in 2022 reveals a genuine cooling off.  Demand appears steady but supply has grown.   

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Auto Companies are Headed South – literally ↘️

The EV revolution is moving dollars South, as auto companies invest millions in plants in the Southern half of the United States. Volkswagen's CEO labeled it “the single biggest industrial transformation, I would say, not to understate it, in the history of America,” CEOs of the major companies cite energy capacity and costs as the top priorities for the move. They also note tax support and labor availability as key for new assembly and battery facilities. 

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China: The Clear Leader in Electric Vehicle Sales 🇨🇳

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Politics and college roommates 🤝

Now, even college sophomores are mirroring the strong political polarization in society. Nearly half will not room with someone that voted for the opposition party candidate. If roommates were assigned randomly, like they were back in the day, this would make for some intense dorm experiences. Or, perhaps, exposure to alternative views would in fact be educational and enlightening – benefiting everyone. Nevertheless, people tend to select others that reflect their own views – political views in this case. The data show a similar phenomenon applies to dating.      

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Are Retail Sales Strong?  Not After Adjusting for Inflation 🛍

Initially, reported retail sales appeared stronger than expected. In July, sales hit another all-time high, up 3.6% over the past 6 months. However, before applauding, we must adjust for inflation.  Doing so, the story changes drastically. Real retail sales peaked in April 2021 and dropped 1.1% over the last 6 months. 

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