Personal consumption rose by a larger 0.7% over the month. The gain was driven by a large jump up in durable goods spending. Services spending growth continued a recent trend of lagging goods consumption growth. From a year prior, consumption spending was 4.1% higher.
The higher growth rate of consumption relative to income over the month caused the savings rate fall back slightly to 5.8% from 6.1% in January. Savings have been modestly higher in the past few months relative to the second half of last year.
As measured by the PCE deflator, prices increased 0.4% over the month, primarily due to energy prices. The PCE has risen considerably in the past three months. Still from a year prior, the PCE deflator was only 1.6% higher. However, this was up from 1.0% as recently as November. The core PCE deflator, which excludes energy and food prices, rose by a lesser 0.2% over the month and was 0.9% higher than a year prior.
|m/m % change||Feb||Jan||Dec||Nov||Oct||Sep|
|Core PCE Deflator||0.2||0.2||0.0||0.1||0.0||0.0|
|Savings Rate (level)||5.8||6.1||5.6||5.5||5.5||5.8|