US consumers modestly elevated spending final month as issues rise about financial outlook

WASHINGTON (AP) — US consumers stepped up their spending a simply bit in February after a pointy pullback the earlier month, signaling that People are spending extra cautiously as issues in regards to the route of the economic system mount.

Retail gross sales rose simply 0.2% in February, a small rebound after a pointy drop of 1.2% in January, the Commerce Division stated Monday. Gross sales rose at grocery shops, dwelling and backyard shops, and on-line retailers. Gross sales fell at auto sellers, eating places, and electronics shops.

The small enhance suggests People could also be rising extra cautious about spending because the inventory market has plunged and President Donald Trump’s tariff threats and authorities spending cuts have led to widespread uncertainty amongst shoppers and companies.

On Friday, a measure of shopper sentiment fell sharply for the third straight month and is now down greater than 20% since December. Respondents to the College of Michigan’s survey cited coverage uncertainty as a number one motive for the gloomier outlook. Whereas the respondents have been divided sharply by get together — sentiment in regards to the present economic system fell amongst Republican by a lot lower than for Democrats — Republicans’ confidence within the economic system’s future dropped 10%.

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D’Innocenzio reported from New York.