Consumer sentiment is souring, and recession fears are rising, but spending in the US is on the rise as consumers and businesses are likely buying now to lessen the expected impact of President Donald Trump's tariffs. Durable goods spending increased about 2.3% from the third quarter of 2024 to $2.218 trillion in the first quarter of 2025.

A car-buying frenzy, stoked by tariff fears, drove US consumer spending in March to its biggest monthly gain in more than two years, new data showed Wednesday.

U.S. consumer spending increased solidly in March as households boosted purchases of motor vehicles to avoid higher prices and shortages due to tariffs, but that did little to change economists' views that the economy had shifted into lower gear.