Why are people afraid to spend money?
Logically, with prices rising slowly, consumption should be more active, but retail data is so bleak, where is the problem? The answer is 'preemptive buying'.
Trump's tariff policy hasn't officially been implemented yet, but many people are worried that the prices of imported goods will rise, so they stockpiled in advance and spent all their money.
Now that their wallets are empty, everyone is starting to tighten their belts. Consumers are not spending, businesses are hesitant to raise prices, and production and wholesale sectors are also weakening, leading to a natural drop in PPI data.