United States Personal Spending

Personal spending in the US rose 1.1% month-over-month in March of 2022, above market expectations for a 0.7% increase and accelerating from an upwardly revised 0.6% gain in February amid higher prices for gasoline and food and stronger demand for services like travel and dining. It reflects an increase of $114.6 billion in spending for services and an increase of $70.4 billion in spending for goods. Within services, increases were widespread across all subcomponents and led by other services (which include international travel) as well as food services and accommodations. Within goods, an increase in nondurable goods (led by gasoline and other energy goods) was partly offset by a decrease in spending on durable goods (led by motor vehicles and parts). The PCE price index jumped by 6.6%, the most since January 1982, while excluding food and energy, prices rose 5.2%, below market expectations.