Consumer spending in the U.S. grew by a weaker-than-expected 0.1% in February

Consumer spending in the U.S. showed weaker-than-expected growth in February, increasing only 0.1%, which was on the lower end of economists' forecasts.

Consumer spending in the U.S. grew more slowly than anticipated in February, increasing a mere 0.1%. This follows a weak January performance, largely blamed on bad weather.

The core personal consumption expenditures (PCE) price index, which excludes food and energy, rose by 2.8% year-over-year, remaining above the Federal Reserve’s 2% target.

President Trump also introduced a new trade tactic, threatening "secondary tariffs" on nations that purchase oil from Venezuela. The president's statement follows his administration’s decision to impose a ban on all petroleum products, impacting Venezuela's ability to export oil to other countries.

This new trade threat adds to Trump’s growing list of economic strategies to leverage U.S. power in both foreign and domestic policy. The president’s administration has already placed tariffs on a range of goods from Canada, China, and Mexico.

However, with the U.S. poised to impose further tariffs on a variety of Canadian goods, Canada’s economy may be pushed to the brink of recession. These tariffs are set to take effect in early April, impacting products like maple syrup, potatoes, and fresh fruit.

As Canada retaliates with own tariffs, increasing prices on U.S. imports, the broader impact on inflation becomes critical. Currently, Canada’s central bank has an upper target of 3% for inflation.

The broader implications of Trump’s trade measures are still unfolding, with the impact on global markets and economies becoming more evident.

In the UK, retail sales showed a rebound in early 2025, suggesting that households are beginning to spend the savings they accumulated last year. This spending surge was particularly notable in household goods, which saw a significant rise in demand, as did jewelry and clothing.

Germany saw business optimism rise to its highest point since June 2024, Chancellor-in-waiting Friedrich Merz promised to modernize Germany’s aging infrastructure with billions of euros in spending.

France’s fiscal deficit for 2024 was smaller than expected, allowing the government some breathing room as it continues to work on reducing its national debt.

In Asia, India’s government is reviewing U.S. demands to cut import duties on farm goods and remove trade barriers, while also seeking an exemption from the U.S.’s upcoming tariffs. Australia’s government surprised with a tax cut and energy rebates to help families with the rising cost of living ahead of the elections. Singapore saw inflation ease slightly as food and leisure prices cooled, signaling a more stable economic outlook.

Emerging markets saw action from Mexico’s central bank, which reduced borrowing costs to 9%. This marks the second consecutive half-point cut as inflation continued to slow and the country faces the risk of additional U.S. tariffs.

Zambia’s economy performed better than expected in 2024, driven by a recovery in agriculture and mining, as the southeast African nation recovered from one another of the worst droughts in living memory.

In other developments, several central banks across the globe kept interest rates at their current levels, including those in Norway and Hungary. Meanwhile, Ghana unexpectedly raised rates to counter inflation. These diverse actions reflect the ongoing efforts to navigate macroeconomic challenges.