U.S. consumer spending rose briskly in January, despite increased prices and Covid-19 infections, but could cool in coming months if Russia’s invasion of Ukraine drives inflation higher, according to economists’ forecasts.
Economists surveyed by The Wall Street Journal expect the Commerce Department to report Friday that spending rose a seasonally adjusted 1.6% in January from the previous month, bouncing back from a 0.6% decline in December. They expect to see personal income fell 0.3% on the month following the expiration of the federal government’s monthly child tax credit.
