Consumer spending rose in February, but at a slower rate than initially expected amid surging inflation rates.
- Consumer spending rose 0.2% last month to $34.9 million. Meanwhile, spending fell by 0.4% after adjusting for inflation.
- The slight increase in spending last month reflects an increase of $93.8 billion in spending for services that was partly offset by a $58.9 billion fall in spending for goods.
- The largest contributor to increases in services was spending on food services and accommodations. Within goods, spending on motor vehicles and parts was the biggest contributor to the decrease.
- The personal consumption expenditures, which measure the Federal Reserve’s preferred inflation, rose 0.6% last month. The core PCE price index, excluding volatile food and energy items, increased by 0.4%.
On a yearly basis, the PCE price index jumped 6.4%, as the core PCE price index expanded 5.4% year on year.
DXY up +0.21%, EUR USD down -0.43%
Source: Bureau of Economic Analysis