Photographer: Adam Gray/Bloomberg

Consumer spending was weaker than expected again in February, while a key inflation metric picked up, in a double whammy for the economy before it even feels the brunt of new tariffs.

Inflation-adjusted consumer spending edged up 0.1 percent, on the low end of economists’ estimates, after a slump January that analysts mostly blamed on bad weather. Notably in February, Americans reduced spending on services for the first time in three years in the face of higher prices—including spending on dining out. “Consumers are resistant to price increases,” Neil Dutta, head of U.S. economics at Renaissance Macro, said in a note. “Ultimately, inflation boils down to a household’s budget constraints, and conditions are deteriorating here.”

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