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Income and spending in the US continued to rise in February, according to new government data released on Friday. Income growth held steady while the rate of increase in spending picked up, rising to its fastest pace in 3 months.Meanwhile, consumer inflation figures remained tame in the latest statistics and the nation's personal savings rate ticked up.
The US Department of Commerce said personal income rose by 0.3% in February. This followed an increase of 0.3% in the previous month.
Economists had expected the pace of growth to slow slightly, with experts projecting personal income to rise by 0.2%.
Spending also showed a modest increase for the month. The government's figures showed a 0.3% rise in February. January's spending growth was revised to 0.2%.
February's advance matched expectations and represented the strongest monthly rise in spending since November.
An important inflation measure included in the income and spending report showed only modest price increases. The PCE price index rose by 0.1%, the same increase that was seen in January.
The core price index, which excludes the volatile food and energy sectors, also advanced by 0.1%.
The personal savings rate ticked up in February, rising to 4.3%. In January, the measure of personal savings as a percentage of disposable personal income came in at 4.2%.
More information about the consumer is set to be released later this morning. The Reuters/University of Michigan consumer sentiment index is expected to rise in March after showing a mark of 79.9 in its mid-February reading. |
