Personal income, spending and consumer prices all rose in February, catching analysts off-guard on some of their predictions.
Income added 0.4% compared to expectations of 0.3%. The number matches the revised upward number for January. Disposable personal income, defined as personal income minus current taxes, added 0.4% in February and continues January's 0.5% gain.
Personal spending rose 0.1%, recovering half of January’s 0.2% loss, but coming in at half of analyst’s expectations.
Consumer prices were in line with estimates, rising 0.2% after three months of declines that include a 0.4% drop in January. The core PCE indicator added 0.1%, the same as in January and also right on with estimates.
Wages and salaries, a component that's been a drag during the economic recovery, rose 0.6% in February after January's 0.1% gain.
And while Americans are making more, they're also saving more. The personal savings rate was up 5.8% in February from January's 5.5%. The additional savings is being blamed for the slow growth in retail sales.
Follow this link for the full analysis from the Bureau of Economics on the latest Personal Income and Outlays report from the Commerce Department.
