U.S. Consumer Spending Rises 0.6 Percent

Mar 30, 10:10 AM

Current Headlines: U.S. consumer spending rose 0.6 percent, its biggest rise in two months, as incomes rose an equal amount, the U.S. Commerce Department reported Friday.

February's spending rise followed January's 0.5 percent increase, while personal-income growth followed an unrevised 1 percent climb in January.

Personal income after taxes rose by 0.5 percent, following an unrevised 0.8 percent increase in January, the department said.

Personal savings as a percentage of income after taxes was negative 1.2 percent, the same as in January, marking the 23rd consecutive month of savings decreases.

Spending on durable goods -- such as cars and appliances meant to last at least three years -- was steady, after January's 1 percent increase, the department said.

Spending on non-durable goods, such as food and clothing, was also steady, after January's 0.2 percent climb. Spending on services jumped by 1 percent following January's 0.6 percent increase.

In annual terms, the price index for personal-consumption expenditures minus food and energy climbed 2.4 percent in February -- the highest level since September.

Core inflation rose 2.4 percent over the past 12 months.