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Data: U.S. Bureau of Economic Analysis via FRED; Chart: Axios Visualsa: 

Rapid rebound patterns in the economy may be coming to an end as consumers face a slew of new concerns this year.

Catch up quick: Spending actually fell in the month of February when inflation is taken into account.

By the numbers: While spending rose by 0.2% last month from January, prices rose much faster — 0.6% over the same time.

Yes, but: Seasonal adjustments to data and high inflation have made the real PCE data series volatile. 

The big picture: The Fed is simultaneously trying to fight inflation by raising interest rates while trying to maintain a level of consumer demand that won't tip the economy into a recession.

What to watch: Despite COVID fading as a concern, Russia’s invasion of Ukraine last month has now started to weigh on consumers’ minds, impacting consumer sentiment.

The bottom line: The economy’s in a tricky place right now and consumers are taking it all in.

Inflation-adjusted spending falls in February

Spending actually fell in the month of February when inflation is taken into account.

Economic data

Rapid rebound patterns in the economy may be coming to an end as consumers face a slew of new concerns this year.Catch up quick: Spending actually fell in the month of February when inflation is taken into account.

After a record economic expansion, the coronavirus pandemic sent the U.S. economy into a recession as unemployment soared to staggering heights. The country now faces urgent questions about how much stimulus is needed for reeling consumers and businesses, and what a recovery might look like.

Inflation-adjusted spending falls in February

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