US consumer spending edges up in Feb

AFP, WASHINGTON: US consu-mer spending edged higher in February as income growth slowed and consumer prices fell slightly, according to official data released Monday that suggested tepid expansion in the economy.
Consumer spending, which accounts for about two-thirds of the activity in the US economy, rose 0.1 per cent in February,
matching the previous two months' increases, the Commerce Department said, sharply revising down January's 0.5 per cent gain. Personal income increased 0.2 per cent last month, marking a slowdown from January's 0.5 per cent gain.
Post-tax, or disposable, personal income, rose by only half as much as in January, at 0.2 per cent.
Americans boosted their savings as economic conditions appeared patchy, with financial market turbulence inducing some caution.
The personal saving rate inched up to 5.4 per cent from 5.3 per cent in January. It was 5.0 per cent in December.
The Federal Reserve's preferred inflation measure weakened, remaining well below the central bank's 2.0 per cent target.
The personal consumption expenditures price index fell 0.1 per cent in February after rising 0.1 per cent in January, continuing its long-running hovering pattern around zero amid low oil prices.
Stripping out volatile food and energy prices, the core PCE price index was up a modest 0.1 per cent for the fourth time in the past five months.
Year-over-year, PCE prices rose 1.0 per cent, edging down for 1.2 per cent in January,
and core PCE was up 1.7 per cent for the second straight month.

 

US consumer spending edges up in Feb

AFP, WASHINGTON: US consu-mer spending edged higher in February as income growth slowed and consumer prices fell slightly, according to official data released Monday that suggested tepid expansion in the economy. Consumer spending, which accounts for about two-thirds of the activity in the US economy, rose 0.1 per cent in February, matching the previous two months increases, the Commerce Department said, sharply revising down Januarys 0.5 per cent gain. Personal income increased 0.2 per cent last month, marking a slowdown from Januarys 0.5 per cent gain. Post-tax, or disposable, personal income, rose by only half as much as in January, at 0.2 per cent. Americans boosted their savings as economic conditions appeared patchy, with financial market turbulence inducing some caution. The personal saving rate inched up to 5.4 per cent from 5.3 per cent in January. It was 5.0 per cent in December. The Federal Reserves preferred inflation measure weakened, remaining well below the central banks 2.0 per cent target. The personal consumption expenditures price index fell 0.1 per cent in February after rising 0.1 per cent in January, continuing its long-running hovering pattern around zero amid low oil prices. Stripping out volatile food and energy prices, the core PCE price index was up a modest 0.1 per cent for the fourth time in the past five months. Year-over-year, PCE prices rose 1.0 per cent, edging down for 1.2 per cent in January, and core PCE was up 1.7 per cent for the second straight month.