---
title: "US consumer spending rises in February; core inflation firmer"
description: "U.S. consumer spending rose 0.4% in February, rebounding from a 0.3% decline in January, driven by higher prices amid trade tensions. Economists had expected a 0.5% increase. The rise in spending, whi"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/233636001.md"
published_at: "2025-03-28T12:38:56.000Z"
---

# US consumer spending rises in February; core inflation firmer

> U.S. consumer spending rose 0.4% in February, rebounding from a 0.3% decline in January, driven by higher prices amid trade tensions. Economists had expected a 0.5% increase. The rise in spending, which constitutes over two-thirds of economic activity, comes as fears of recession grow due to deteriorating business sentiment and retaliatory tariffs. Core inflation also increased, with the PCE price index up 0.3% in February, matching January's rise. The Federal Reserve is monitoring inflation closely, maintaining interest rates in the 4.25%-4.50% range, with expectations of easing in June.

WASHINGTON, March 28 (Reuters) - U.S. consumer spending rebounded in February, likely lifted by higher prices, which could amplify fears that the economy was facing a period of tepid growth and high inflation amid an escalation in trade tensions.

Consumer spending, which accounts for more than two-thirds of economic activity, climbed 0.4% after a revised 0.3% decline in January, the Commerce Department’s Bureau of Economic Analysis said on Friday.

Economists polled by Reuters had forecast consumer spending rising 0.5% after a previously reported 0.2% fall in January.

President Donald Trump has announced a slew of tariff actions since taking office in January. On Wednesday, Trump unveiled a 25% levy on imported cars and light trucks starting next week. Economists say the size and manner in which the tariffs are being handled were detrimental to economic growth.

Business and consumer sentiment have deteriorated considerably, raising the risks of a recession, with the United States’ trade partners expected to retaliate through duties of their own. The well telegraphed tariffs have sharply widened the trade deficit as businesses rushed to secure imports.

Consumers, also eager to avoid higher prices, front-loaded their spending, much of which took place in December. The ebb in pre-emptive buying as well as unseasonably cold temperatures and snowstorms cooled spending at the start of the year.

Before the data, gross domestic product estimates for the first quarter were mostly around a 1.0% annualized rate and the odds of a contraction have risen. The economy grew at a 2.4% pace in the October-December quarter.

Trump, who sees tariffs as a tool to raise revenue to offset his promised tax cuts and to revive a long-declining U.S. industrial base, is planning to unveil a wave of reciprocal tariffs next week. Economists, however, argue that the duties will be inflationary in the short-run.

Consumers’ inflation expectations have sky-rocketed.

Federal Reserve Chair Jerome Powell acknowledged last week that inflation had started to rise “partly in response to tariffs,” adding that “there may be a delay in further progress over the course of this year.”

The Personal Consumption Expenditures (PCE) price index increased 0.3% in February after advancing by an unrevised 0.3% in January. Economists had forecast the PCE price index gaining 0.3%. In the 12 months through February, prices increased 2.5%, matching January’s rise.

Stripping out the volatile food and energy components, the PCE price index rose 0.4% after an unrevised 0.3% advance in January. In the 12 months through December, core inflation increased 2.8% after rising 2.7% in January.

The U.S. central bank tracks the PCE price measures for its 2% inflation target. The Fed last week left its benchmark overnight interest rate unchanged in the 4.25%-4.50% range. Financial markets expect it to resume its easing cycle in June.

## Related News & Research

| Title | Description | URL |
|-------|-------------|-----|
| 美国考虑降低钢铝关税？这对金属意味着什么 | 大摩认为，美国若调整钢铝关税，仅针对衍生产品，初级金属仍面临 50% 高关税，影响有限。LME 铝价和美国中西部溢价预计不受冲击，美铝短期仍受保护。此外，该调整不意味着 15% 铜关税的可能性降低。 | [Link](https://longbridge.com/en/news/275975269.md) |
| 关于 “场外资金” 的讨论 | 此外，关税悬而未决 | [Link](https://longbridge.com/en/news/276436897.md) |
| 表格 - 达拉斯联储 12 月修正平均个人消费支出（PCE）价格指数上升 2.2% | 达拉斯联邦储备银行的 12 月修剪均值个人消费支出（PCE）价格指数显示年增长率为 2.2%，较 11 月的 1.7% 有所上升。整体 PCE 指数的单月变化为 4.4%，而核心 PCE 则为 4.3%。在六个月内，修剪均值 PCE 为 2 | [Link](https://longbridge.com/en/news/276460743.md) |
| 关于特朗普关税退款的争斗即将展开——这场争斗可能会非常混乱 | 特朗普关税退款之战即将开始——这将是一场混乱的斗争 | [Link](https://longbridge.com/en/news/276480718.md) |
| 米兰辞去白宫职位留任美联储，市场预期沃什接任 | 美联储理事米兰正式辞去白宫经济顾问职务，结束争议性的双重任职，缓解市场对美联储独立性的担忧。米兰表示继续留任美联储，直至继任者确认。特朗普上周宣布计划提名沃什担任美联储主席，市场预期沃什将被任命至米兰的席位。 | [Link](https://longbridge.com/en/news/274746567.md) |

---

> **Disclaimer**: This article is for reference only and does not constitute any investment advice.