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Friday, March 28, 2014

Personal Income and Consumption Grew 0.3% in February

Personal income grew by $47.7 billion (0.3%) in February, the same pace as the month prior. Personal consumption also grew by 0.3% in February, a slightly faster pace than January. The savings rate grew to 4.3%



Personal income growth was led by dividend and transfer income growth. Wage income grew 0.2% in February, contributing less to personal income growth than the month prior. Real income growth was lower than the nominal wage growth, growing 0.2%.

Personal consumption picked up the pace slightly to 0.3% in February. Real consumption was 0.2%. Consumption growth was led by services and non-durable goods, both which grew 0.3% over the month. Durable goods shrank for the third consecutive month.

The PCE deflator rose 0.9% above year ago levels, the slowest growth since October. Inflation is well below the 2.0% target of the Federal Reserve and could be a cause for concern.

The savings rate increased slightly to 4.3% from 4.2%.

Read the BEA release.

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