28 Mar 2016
US personal spending increased 0.1% in February
The latest US Commerce Department data release showed personal spending growth slowed in February as expected as consumers saved their income.
Personal spending matched estimated of 0.1%. Personal income rose 0.2%, beating the estimated figure of 0.1%. The saving rate thus jumped to one-year high.
Meanwhile, the core personal consumption expenditure m/m dropped 0.1%, leading to a annualized figure of 0.1%, which was slightly less than estimated figure of 0.2%. This inflation gauge is preferred by Federal Reserve policy makers and has not met their 2 percent goal since April 2012.
It remains to be seen if the jump in the savings rate to a one-year high translated into higher consumption in March.
Personal spending matched estimated of 0.1%. Personal income rose 0.2%, beating the estimated figure of 0.1%. The saving rate thus jumped to one-year high.
Meanwhile, the core personal consumption expenditure m/m dropped 0.1%, leading to a annualized figure of 0.1%, which was slightly less than estimated figure of 0.2%. This inflation gauge is preferred by Federal Reserve policy makers and has not met their 2 percent goal since April 2012.
It remains to be seen if the jump in the savings rate to a one-year high translated into higher consumption in March.