Consumer spending in the United States rose moderately in February, after jumping in the previous month, and despite signs of declining inflation, its rate remains high, which may prompt the Federal Reserve (the US central bank) to raise interest rates again this year. .
The Commerce Department said on Friday that consumer spending, which accounts for more than two-thirds of US economic activity, increased 0.2% last month. Data for January was revised to show spending rising 2 percent instead of 1.8 percent, as previously reported.
Economists polled by Reuters had expected consumer spending to rise 0.3 percent.
Consumer spending also slowed as income increases eased.
And with the January data revised and the increase last month, consumer spending is heading for higher growth in the first quarter, after it rose at its slowest pace in two and a half years in the October-December quarter, and this helps the economy expand. .
The personal consumption expenditures price index increased 0.3% last month after rising 0.6% in January. The index rose 5% in the twelve months to February, after achieving a 5.3% increase in January.
The personal consumption expenditures index, which excludes volatile food and energy prices, rose 0.3%, after increasing 0.5% in January.
The so-called core index rose 4.6% year-on-year in February, after rising 4.7% in January.
The core indicator is the Fed’s preferred measure of inflation, with a target of 2%.
