U.S. consumer spending bounced back in February but still came in below what many experts predicted.
Retail sales rose 0.2% last month, a modest increase after falling 1.2% in January, according to the latest numbers released Monday from the Department of Commerce. The Dow Jones predicted a 0.6% month-to-month increase.
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The less-than-expected uptick may signal Americans are pulling back their spending amid an uncertain economic future.
"Consumers are feeling stingy these days," said Ted Rossman, Bankrate senior industry analyst. "There're cumulative effects of inflation. There're more recent fears about tariffs, perhaps making higher prices even higher. This is why people are being more reluctant to spend."
The University of Michigan's latest consumer sentiment survey showed sentiment down more than 10% in March compared to February. It noted consumers cited a "high level of uncertainty around policy."
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But not all consumers are pulling back. Las Vegas resident Jeff Balzer told the Scripps News Group last week that he was still planning on going ahead with a car purchase.
"You always have worries,' Balzer said. "Look at what's happening. ... But sometimes you're in a position where you've got to make a decision, and that's where we're at."
Balzer may not be alone. The National Retail Federation's chief economist Jack Kleinhenz noted that sometimes consumer sentiment doesn't match consumers' actions.
"The consumer sentiment information that we received doesn't always correlate highly with American household spending," Kleinhenz said. "In fact, what people say they're going to do is a lot different than what they do. They have the capacity to spend right now. They've pulled back, I think, because of some of these uncertainties.
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Consumer spending makes up about two-thirds of the country's Gross Domestic Product, but Rossman says that the backbone of the U.S. economy is still strong.
"Overall, the fundamentals are still pretty good as far as jobs, economic growth," Rossman said. "We're still seeing growth, but it's slower."
The unemployment rate remains relatively low at 4.1% and the economy added 151,000 jobs last month, though that number was slightly below what experts had forecast.
