US consumer spending rebounds in February; core inflation firmer

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WASHINGTON: Amid rising prices of goods and services, US consumers suffered from costs in February, which may increase the fears that the economy is facing faster growth and more inflation during trade tensions.

The Department of Commerce report on Friday shows a measure of maximum price increase in 13 months. Economists say that President Donald Trump’s protection trade agenda, after taking office in January, marked the tariff action announcements, raising the prices of imported goods, and inflation will increase in the next months.

Federal Reserve Chair Jerome Powell admitted last week that inflation “tariff response has begun partially increasing,” he added, adding that “further progress may be delayed this year.”

“Statistics support our idea that the threats of the economy are emerging, but with the heating of inflation, the feed will now maintain its waiting and viewing point.”

According to the Bureau of Trade Economic Analysis, after the downside down 0.3 % in January, consumer costs, which are part of two -thirds of economic activity, rose 0.4 %. Earlier in January, the economists who voted by voters voted by voters predicted a 0.5 % increase in consumer spending.

Expenditures on long -term manufactured goods such as motor vehicles and parts, entertainment equipment and vehicles, as well as furniture and other sustainable household goods were eliminated.

Spending on non -capable of food and drinks also increased. Services costs increased by 0.2 %, with clouds that are dark on consumer economy, with a decrease in discretionary costs. Spending on restaurants, hotels and motels decreased by 15.0 %.

The costs of non -profit companies have decreased by 15.8 %, which potentially reflects deductions in federal funds, as the Trump administration runs an unprecedented campaign to reduce the government rapidly. This week, Trump unveiled 25 % levy on imported cars and light trucks that began next week.

US stocks opened less. The dollar slipped against a currency basket. US Treasury production has dropped slightly.

Increase inflation expectations

Economists say the size and methods in which the rates are being handled were detrimental to economic growth. He has often criticized the method of such misconduct that the performance of the government of Tech billionaire Elon Musk, or the Dodge, has fired thousands of federal workers, many of whom have been ordered to be restored by the courts.

The emotions of business and consumers have worsened, which increases the risk of stagnation or even worse, recession. The United States trade partners are expected to retaliate through their own duties.

With the arrival of the business to secure imports, the well -known telegraph prices have expanded the trade deficit rapidly.

Consumers are also anxious to avoid high prices, loading their costs, most of which took place in December. At the beginning of the year, unhealthy cold temperatures and snowy storms have already seen as a tool to meet their promised tax deductions and restore the long -term US industrial base. Economists, however, argue that duties in the short term will be inflation. In February, the price index of personal consumption (PCE) increased by 0.3 % in January, according to the expected margin of the same margin and economists.