According to a report by JinShi, consumer spending in the United States unexpectedly decreased in January, but the rebound in inflation may provide support for the Federal Reserve to postpone interest rate cuts for a period of time. Data shows that consumer spending, which accounts for over two-thirds of US economic activity, decreased by 0.2% last month, and the market expects it to grow by 0.1%. The weak consumer spending may reflect the weakening of the driving force of pre consumption, as well as the drag caused by abnormal low temperatures and blizzards in most parts of the country. The Los Angeles wildfires may also have harmed consumption. The winter storm disrupted last month's residential construction and was also one of the reasons that suppressed employment growth. In addition to weather factors, the Trump administration's policies have also hindered economic activity, including tariffs and significant spending cuts. The personal consumption expenditure (PCE) price index increased by 0.3% in January, with an annual increase of 2.5%. The annual rate of core PCE increased by 2.6%, and the monthly rate rose from 0.2% last month to 0.3%, both in line with market expectations.
