Consumer spending is rising and has sped up a little since last month.<\/p>\n
The Federal Bureau of Economic Analysis tracks total spending in the U.S. through personal consumption expenditure data. In January, spending hit $14.3 trillion \u2014 a 1.1% increase since December, which is one of the largest monthly pickups since March of 20212 and the fifth largest since the COVID-19 pandemic hit.<\/p>\n
According to the data, spending rose 2.2% in the goods category which the bureau says is due to inflation but offset by lower gas prices.<\/p>\n
Services rose 0.6% monthly but were offset by a decrease in utility prices.<\/p>\n
Some items that rose the most quarter to quarter: school lunches are up 42% as free lunch programs end across the country.<\/p>\n
Spending on rideshares and taxis is up 15% and spending by foreign tourists in the U.S. also rose 13%.<\/p>\n
Some of the biggest decreases in spending came from eggs, which are down 11%.<\/p>\n
Fuel oils, like propane, are down 10% and spending on auto leases is down 9%.<\/p>\n
Local economist Jim Rounds says the spending rise is not unexpected.<\/p>\n
\u201cYou combine people going into more debt, with extra money bouncing around the economy, even with inflation, you\u2019re still seeing extra spending,\u201d Rounds said. \u201cThat\u2019s probably going to continue a little while longer until the Federal Reserve Board starts sucking money back out of the economy.\u201d<\/p>\n