As expected, consumer spending fell slightly in February as cold weather and COVID restrictions hold back the economy in 2021. (BEA)
- Consumer spending fell 1.0% in February to 149 billion after jumping 3.4% in January.
Personal income decreased 7.1% in February to $1.5 trillion after a 10% jump in January.
Disposable personal income saw the biggest drop falling 8.0% in February to $1.53 trillion after a 11.4% jump in Janaury.
This slight decline was predicted by economists and is looked at as being temporary. As The Wall Street Journal reported, “Cold weather—including storms that shut down sections of Texas and other states—prevented many people from dining out, ordering food online or going to stores last month.” (WSJ)
Warmer weather is on the way, vaccines are becoming more available, and stimulus checks are hitting bank accounts. All of these factors are why some economists have projected as high as 10% growth in Q2 of this year. Happy Spending!