US Consumer Spending Declines Amid Harsh Winter and Inflation Relief Signs

Reported about 11 hours ago

In January, US consumer spending unexpectedly dropped by 0.5% due to extreme winter weather and a slowdown in services, raising concerns about economic resilience. This decline marks the largest monthly drop in nearly four years, primarily influenced by a significant decrease in motor vehicle purchases. However, the inflation-adjusted numbers showed some relief, with the core personal consumption expenditure index reflecting minimal annual price increase, aligning with the Federal Reserve's inflation targets.

Source: YAHOO

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