From Investing.com: 2025-03-31 04:50:00

Consumer spending increased by 0.4% in February, falling short of street estimates of 0.5%, following January’s decline of 0.3%, the worst in almost 4 years. Spending on goods rose 0.9%, while spending on services only grew 0.2%, an 18-month low. Real consumer spending adjusted for inflation only rose 0.1%, with the bulk of the increase attributed to rising prices. Core PCE, the Fed’s preferred inflation measure, increased by 0.4% in February, hitting a 13-month high. Incomes rose by 0.8%, beating expectations, marking the 10th straight month above the inflation rate.

However, consumer sentiment has declined, with the sentiment index revised lower for March and a 12% monthly decline in sentiment, the worst since June 2022. Republicans, independents, and Democrats all expressed worsening expectations for their personal finances, business conditions, unemployment, and inflation. Two-thirds of consumers expect unemployment to rise in the year ahead, the highest reading since 2009.



Read more at Investing.com: Inflation, Falling Consumer Sentiment Could Challenge Spending in Coming Months