Indicators
The US Economy Came In Hot in January — But There Are Some Caveats
- Strong job market boosted spending, keeping inflation elevated
- Weather, one-off factors may play a role in strength of data
Shoppers in the SoHo neighborhood of New York.
Photographer: Jordana Bermudez/BloombergThis article is for subscribers only.
The US was unseasonably hot in January, and it wasn’t just the weather.
Friday’s data are only the latest indication that the economy got off to a strong start in 2023, underscored by the biggest jump in consumer spending in nearly two years and a reacceleration in closely watched measures of inflation. Sales of new homes also surged, following figures last week that showed strong retail sales.