According to the latest data from the US Department of Commerce, consumer spending softened in December 2020, even as overall inflation eased. The key Federal inflation measure was down 0.1% in December, while consumer spending fell by 0.2%.
The news comes as US equity futures fell amid growing concerns about corporate earnings. The Wall Street Journal reported that consumer spending was down in December, with personal income also declining. Additionally, The New York Times reported that consumer spending slid again in December, with the decline attributed to the economic impact of the COVID-19 pandemic.
The softening in consumer spending and inflation could be a sign that the US economy is still in a fragile state, with many businesses still struggling to recover from the pandemic. Experts suggest that the Federal Reserve may need to take further action to stimulate the economy and support businesses.
Overall, the latest data shows that the US economy is still facing many challenges, despite a vaccine rollout that has been hailed as a success. It remains to be seen how the economy will fare in 2021, but the latest figures suggest that the road to recovery could be a long one.