U.S. inflation-adjusted consumer spending rose in March despite intense price pressures, indicating households still have solid appetites and wherewithal for shopping.
Purchases of goods and services, adjusted for changes in prices, increased 0.2% from the prior month, following a 0.1% gain in February that was revised from a previously reported decline, according to Commerce Department figures Friday. The gain was driven by services, while merchandise buying dropped, signaling a shift in consumer behavior as pandemic concerns wane.
The personal consumption expenditures price index, which the Federal Reserve uses for its inflation target, advanced 0.9% from a month earlier and 6.6% from March 2021, the most since 1982. Unadjusted for inflation, spending rose 1.1% from the prior month, while incomes increased by more than expected.
