It may be evidence inflation is meaningfully stretching budgets.
According to economic forecaster Lakshman Achuthan, Wall Street is ignoring a striking consumer spending slowdown that will translate into an underwhelming holiday season.
“There’s still this narrative that the rebound is there,” the Economic Cycle Research Institute co-founder told CNBC’s “Trading Nation” on Wednesday. “The hope had been people would shift from goods to services, and that would keep reaccelerating… That hasn’t happened.”
Achuthan highlights the downturn in a chart reflecting real consumer spending data from the U.S. Bureau of Economic Analysis.
“It shows consumer spending for goods and services. And, you could see that spike in the spring of ’21, and that’s right following all those stimulus checks,” he said. “Ever since then, things have really been slowing quite sharply. You could see goods growth coming down. Services growth also coming down.”
Achuthan contends rising prices for housing, energy and food are leaving consumers with less money to spend on discretionary purchase.
“I don’t think we could just pretend that that’s not going to have some sort of impact,” he said.
U.S. consumer prices jumped to the highest level in more than 30 years in October, according to the Labor Department.
“I don’t know about decades long stagflation. But I think we could have a snapshot here of what I would call cyclical stagflation,” Achuthan said. “You could have some cyclical slowing while inflation is rising. That’s a snapshot. It’s like a polaroid shot of stagflation for a little bit. But we have to see where the inflation cycle goes. That remains to be seen.”
A Vestas wind turbine near Baekmarksbro in Jutland.
Afp | Getty Images
European wind power stocks tumbled Wednesday after President-elect Donald Trump said he would prevent the construction of new turbines.
“We’re going to try and have a policy where no windmills are being built,” Trump told reporters at a press conference at his Mar-a-Lago home in Florida on Tuesday afternoon.
The Danish wind turbine manufacturer Vestas Wind Systems and Danish wind developer Orsted fell about 7% Wednesday in the wake of Trump’s remarks.
The president-elect went on a lengthy attack against wind turbines during yesterday’s press conference, arguing that they are too expensive, require subsidies and lack public support.
Trump’s opposition to wind power creates further challenges for an industry that has already struggled in the face of high interest rates that have raised the cost of developing new projects more expensive. In late 2023, for example, Orsted took a $4 billion writedown and canceled two offshore wind projects off the coast of New Jersey.
Still, wind power has expanded in the U.S., growing from 2.4 gigawatts in 2000 to 150 gigawatts by April 2024, according to data from the Energy Information Administration. Electricity generation from wind hit a record in April 2024 and beat generation from coal-fired plants, according to EIA data.
The US Department of Energy (DOE) has released an encouraging new report revealing that 90% of wind turbine materials are already recyclable using existing infrastructure, but tackling the remaining 10% needs innovation.
That’s why the Biden administration’s Bipartisan Infrastructure Law has allocated over $20 million to develop technologies that address these challenges.
Why this matters
The wind energy industry is growing rapidly, but questions about what happens to turbines at the end of their life are critical. Recyclable wind turbines means not only less waste but also a more affordable and sustainable energy future.
According to Jeff Marootian, principal deputy assistant secretary for the Office of Energy Efficiency and Renewable Energy, “The US already has the ability to recycle most wind turbine materials, so achieving a fully sustainable domestic wind energy industry is well within reach.”
The report, titled, “Recycling Wind Energy Systems in the United States Part 1: Providing a Baseline for America’s Wind Energy Recycling Infrastructure for Wind Turbines and Systems,” identifies short-, medium-, and long-term research, development, and demonstration priorities along the life cycle of wind turbines. Developed by researchers at the National Renewable Energy Laboratory, with help from Oak Ridge and Sandia National Laboratories, the findings aim to guide future investments and technological innovations.
What’s easily recyclable and what’s not
The bulk of a wind turbine – towers, foundations, and steel-based drivetrain components – is relatively easy to recycle. However, components like blades, generators, and nacelle covers are tougher to process.
Blades, for instance, are often made from hard-to-recycle materials like thermoset resins, but switching to recyclable thermoplastics could be a game changer. Innovations like chemical dissolution and pyrolysis could make blade recycling more viable in the near future.
Critical materials like nickel, cobalt, and zinc used in generators and power electronics are particularly important to recover.
Key strategies for a circular economy
To make the wind energy sector fully sustainable, the DOE report emphasizes the adoption of measures such as:
Better decommissioning practices – Improving how turbine materials are collected and sorted at the end of their life cycle.
Strategic recycling sites – Locating recycling facilities closer to where turbines are decommissioned to reduce costs and emissions.
Advanced material substitution – Using recyclable and affordable materials in manufacturing.
Optimized material recovery –Developing methods to make recovered materials usable in second-life applications.
Looking ahead
The DOE’s research also underscores the importance of regional factors, such as the availability of skilled workers and transportation logistics, in building a cost-effective recycling infrastructure. As the US continues to expand its wind energy capacity, these findings provide a roadmap for minimizing waste and maximizing sustainability.
More information about the $20 million in funding available through the Wind Turbine Technology Recycling Funding Opportunity can be found here. Submission deadline is February 11.
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Mazda is finally stepping up with plans to build its first dedicated EV. The upcoming Mazda EV will be made in Japan and based on a new in-house platform. Here’s what we know about it so far.
The first dedicated Mazda EV is coming soon
Although Mazda isn’t the first brand that comes to mind when you think of electric vehicles, the Japanese automaker is finally taking a step in the right direction.
Mazda revealed on Monday that it plans to build a new module pack plant in Japan for cylindrical lithium-ion battery cells.
The new plant will use Panasonic Energy’s battery cells to produce modules and EV battery packs. Mazda plans to have up to 10 GWh of annual capacity at the facility. The battery packs will power Mazda’s first dedicated EV, which will also be built in Japan using a new electric vehicle platform.
Mazda said it’s “steadily preparing for electrification technologies” under its 2030 Management Plan. The strategy calls for a three-phase approach through 2030.
The first phase calls for using its existing technology. In the second stage, Mazda will introduce a new hybrid system and EV-dedicated vehicles in China.
The third and final phase calls for “the full-fledged launch” of EVs and battery production. By 2030, Mazda expects EVs to account for 25% to 40% of global sales.
Mazda launched the EZ-6, an electric sedan, in China last October. It starts at 139,800 yuan, or around $19,200, and is made by its Chinese joint venture, Changan Mazda.
Based on Changan’s hybrid platform, the electric sedan is offered in EV and extended-range (EREV) options. The all-electric model gets up to 600 km (372 miles) CLTC range with fast charging (30% to 80%) in 15 minutes.
At 4,921 mm long, 1,890 mm wide, and 1,485 mm tall with a wheelbase of 2,895 mm, Mazda’s EZ-6 is about the size of a Tesla Model 3 (4,720 mm long, 1,922 mm wide, and 1,441 mm tall with a 2,875 mm wheelbase).
Inside, the electric sedan features a modern setup with a 14.6″ infotainment, a 10.1″ driver display screen, and a 50″ AR head-up display. It also includes zero-gravity reclining seats and smart features like voice control.
The EZ-6 is already off to a hot sales start, with 2,445 models sold in November. According to Changan Mazda, the new EV was one of the top three mid-size new energy vehicle (NEV) sedans of joint ventures sold in China in its first month listed.
Will Mazda’s first dedicated EV look like the EZ-6? We will find out with Mazda aiming to launch the first EV models on its new in-house platform in 2027. Stay tuned for more.
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