Consumer spending rises a mere 0.1%

Washington

US consumer spending rose marginally in February and overall inflation retreated, suggesting the Federal Reserve could take its time in raising interest rates this year despite a tightening labour market.

The Commerce Department said on Monday that consumer spending edged up 0.1 per cent as households cut back on goods purchases after a downwardly revised 0.1 per cent gain in January. Consumer spending, which accounts for more than two-thirds of US economic activity, was previously reported to have increased 0.5 per cent in January.