January’s data on retail and food services spending proved disappointing, much of it due to a decline in unit motor vehicle sales and a dip in prices for gasoline. However, the softness was broad-based and sets 2024 off to a weak start for consumer spending after a solid performance in the fourth quarter 2024. But what is the outlook for February and March? There are a few factors that could determine whether consumer spending holds up in the first quarter 2024 compared to the fourth quarter 2023. First there’s household incomes. With inflationary pressures dialing down and wages continuing to rise, households may ... (full story)