From the BEA:
Personal income increased $31.5 billion, or 0.3 percent, and disposable personal income (DPI)increased $21.7 billion, or 0.2 percent, in February, according to the Bureau of Economic Analysis. Personal consumption expenditures (PCE) increased $13.1 billion, or 0.1 percent. In January, personal income increased $77.1 billion, or 0.7 percent, DPI increased $53.5 billion, or 0.6 percent,and PCE increased $72.1 billion, or 0.8 percent, based on revised estimates.
Personal saving — DPI less personal outlays — was a negative $43.8 billion in February,compared with a negative $51.0 billion in January. Personal saving as a percentage of disposable personal income was a negative 0.5 percent in February, the same as in January. Negative personalsaving reflects personal outlays that exceed disposable personal income. Saving from currentincome may be near zero or negative when outlays are financed by borrowing (including borrowing financed through credit cards or home equity loans), by selling investments or other assets, or byusing savings from previous periods. For more information, see the FAQs on “Personal Saving” on BEA’s Web site.
Consumer spending rose 0.1 percent in February, the smallest gain since August, as Americans took a breather after splurging a month earlier. A measure of prices favored by Federal Reserve policy makers rose 0.1 percent, as expected.
The increase followed a revised 0.8 percent spending gain in January that was the biggest in six months, the Commerce Department reported today in Washington. Incomes rose 0.3 percent after a 0.7 increase the previous month.
Rising incomes and more jobs are shoring up consumer confidence, which will help spending in coming months, economists said. A healthy consumer and revised figures showing inflation jumped last quarter may keep the pressure on the Fed to raise its main interest rate at least one more time.
The savings rate, which measures the difference between income and spending, held at a minus 0.5 percent for a second month. The rate has been negative for nine of the last 11 months. A negative rate suggests consumers are dipping into savings to maintain spending.