US consumer spending has stayed flat at 0.1 percent in February and inflation retreated. This is according to the US Commerce Department, which also revised spending in January down sharply to 0.1 percent instead of 0.5 percent. Consumer spending accounts for more than two-thirds of the US economic activity, and the reduction on US households' purchase is to be blamed for the weak numbers.
A separate report showed the goods trade deficit widen in February from the fourth quarter. Following sluggish readings, economists have slashed their first-quarter gross domestic product growth estimate to below 1 percent.
These data, together with a strengthening labour market number, is an important guide for the US federal reserve's rate decision. Analysts say the mixed signals could entail the Fed remaining cautious about its rate hike, which markets widely expect to be in April or June.
