US incomes rose much more sharply than expected in February, and spending and core consumer price growth also outpaced forecasts, a government report showed today.
The Commerce Department said personal income rose 0.6 per cent in February, below the unrevised 1 per cent gain for January but double the 0.3 per cent increase forecast by analysts in a Reuters poll.
February consumer spending also rose 0.6 per cent after an unrevised 0.5 per cent January gain. Analysts had forecast just a 0.3 per cent rise in consumer spending.
Core consumer prices, which exclude volatile energy and food costs, rose 0.3 per cent in February, outpacing forecasts for a 0.2 per cent rise, following a downwardly revised 0.2 per cent gain in January.
The core prices were up 2.4 per cent compared with a year earlier after a downwardly revised 2.2 per cent gain in January. Officials at the Federal Reserve have said they prefer the 12-month rise in core prices to remain between 1 per cent and 2 per cent.
The February savings rate was unchanged with January at a negative 1.2 per cent of disposable personal income. The savings rate has been negative since April 2005.