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U.S. consumers remained cautious about spending last month as inflation ticked higher
www.bnnbloomberg.ca
... Inflation picked up last month and consumers barely raised their spending, signs that the economy was already cooling even before most tariffs were imposed.
Friday's report from the Commerce Department showed that consumer prices increased 2.5 per cent in February from a year earlier, matching January's annual pace. Excluding the volatile food and energy categories, core prices rose 2.8 per cent compared with a year ago, higher than January's figure of 2.7 per cent.
Economists watch core prices because they are typically a better guide of where inflation is headed. The core index has barely changed in the past year. Inflation remains above the Federal Reserve's 2 per cent target, making it difficult for the central bank to cut its key interest rate anytime soon.
The report also showed that consumer spending rebounded last month after falling by the most in four years in January. Yet much of the additional spending reflected price increases, with inflation-adjusted spending barely rising. The weak figure suggests growth is rapidly slowing in the first three months of this year as consumers and businesses turn cautious amid sharp changes in government policies.
"Inflation too hot and spending too cold," said Stephen Brown, an economist at Capital Economics, a consulting firm, in an email. "The Fed is unlikely to cut interest rates this year." ...
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Consumer confidence is sliding as Americans' view of their financial futures slumps to a 12-year low
apnews.com
... U.S. consumer confidence continued its sharp 2025 decline as Americans' views about their financial futures slumped to a 12-year low, driven by rising anxiety over tariffs and inflation.
The Conference Board reported Tuesday that its consumer confidence index fell 7.2 points in March to 92.9, the fourth straight monthly decline and its lowest reading since January of 2021. The reading was short of analysts expectations for a reading of 94.5, according to a survey by FactSet.
The business group found that the measure of Americans' short-term expectations for income, business and the job market fell 9.6 points to 65.2.
That's the lowest reading in 12 years and well below the threshold of 80, which the Conference Board says can signal a potential recession in the near future. The proportion of U.S. consumers anticipating a recession remains at a nine-month high, the board reported. ...
