Goldman Sachs Group warned of the decline in consumer purchasing power, which will pass through corporate profits, which poses a greater risk to US stocks due to the sale of shares by the American family sector.

High inflation and low asset prices are beginning to strain household finances, Goldman strategists led by David Costin wrote on Friday. They pointed to a 0.3% drop in retail sales in May and a record low reading of consumer confidence in Michigan for June.

Strategists said retailers such as Target and Walmart have overestimated consumer demand in some general merchandise categories and are now offering deep discounts to reduce excess inventory.

Analysts pointed out that the decline in consumer spending represents a threat to the profits of consumer retail companies, and automakers in particular.