US consumer spending rose for a second straight month in February, while incomes reversed the previous month's gains, government data showed today.
The Commerce Department said spending increased by 0.2 per cent, after rising by a revised 1 per cent in January, previously reported as a 0.6 per cent increase. However, after adjusting for inflation, consumer spending in February fell 0.2 per cent.
Incomes fell by 0.2 per cent after January's revised 0.2 per cent rise. Analysts polled by Reuters had forecast spending to rise by 0.2 per cent and incomes to fall 0.1 per cent.
Savings fell slightly to an annual rate of $450.7 billion. The savings rate was at 4.2 per cent in February, indicating that households were still remaining frugal.
Prices edged up in February, with the overall personal consumption expenditures price index rising 1 per cent on a year-over-year basis from 0.8 per cent in January. Excluding food and energy, the index rose 1.8 per cent after gaining 1.7 percent in January.
Reuters