US Real Personal Spending Shows Modest Growth in January

Real personal spending in the US, which adjusts consumer outlays for inflation, rose 0.1% month-over-month in January 2026, matching the pace of the previous two months and slightly exceeding market expectations of no growth. The data indicate that consumer spending remained subdued as high inflation continued to weigh on households, particularly in the wake of the holiday season. Goods spending fell 0.4%, led by weaker purchases of motor vehicles (-3.2%) and recreational goods (-0.5%), while nondurables were flat, with gains in food (+0.3%) offset by declines in clothing (-1.0%) and gasoline (-0.2%). Meanwhile, services consumption rose 0.3%, supported by higher spending on housing and utilities (+0.4%), health care (+0.4%), financial services and insurance (+0.6%), and other services (+0.3%).