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.