US Real Consumer Spending Edges Up 0.1% in February

Inflation-adjusted US personal spending inched up 0.1% month-over-month in February 2026, following no growth in January, signaling continued caution among households amid high inflation. Goods spending partially recovered, rising 0.2% after January’s 0.7% decline, driven by a 4.3% rebound in motor vehicle and parts purchases (vs. -4.2% in January). However, other durable goods remained weak, and non-durable goods spending fell for the third consecutive month (-0.2%), weighed down by declines in off-premises food and beverages (-0.8%) and gasoline and energy goods (-0.3%). Services spending also slowed to 0.1% from 0.3%, with softer demand for housing and utilities, healthcare, recreation, and financial services.

Real personal spending in the US, which adjusts consumer outlays for inflation, rose 0.1% month-over-month in January 2026, matching the pace of the previous two months and slightly exceeding market expectations of no growth. The data indicate that consumer spending remained subdued as high inflation continued to weigh on households, particularly in the wake of the holiday season. Goods spending fell 0.4%, led by weaker purchases of motor vehicles (-3.2%) and recreational goods (-0.5%), while nondurables were flat, with gains in food (+0.3%) offset by declines in clothing (-1.0%) and gasoline (-0.2%). Meanwhile, services consumption rose 0.3%, supported by higher spending on housing and utilities (+0.4%), health care (+0.4%), financial services and insurance (+0.6%), and other services (+0.3%).