One of the most interesting charts at the Consumer Metrics Institute website is this overlay that compares the contraction of the Consumer Growth Index in 2008 with the contraction that began in January of this year.

I've reproduced the chart with annotations for the elapsed time and the relationship of the contractions to major market milestones.

Click for a larger image

Among other things, this chart illustrates the more subtle and pernicious nature of the current decline in consumption. The most recent data is through August 21. Today, two days later, the current decline matches the length of the 223 day contraction cycle. And we're still trending down.

It will be interesting to see Friday's updated estimate of 2nd quarter GDP in light of this indicator of the consumer, who accounts for about 70% of the US economy.