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US consumer spending accelerated in
February, rising more than expected, following a month which was saw extreme
weather in some regions. However, a big part of the increase went to cover higher gas prices.
Consumer spending is accounts for about 70% of the demand factor in gross
Economists who had been surveyed by Dow Jones Newswires had estimated spending
would rise by 0.6% and incomes by 0.4% in February.
The Bureau of Economic Analysis
reported the following Real Disposable Personal Income and Real Consumer
Personal income increased
0.3% in February after increasing 1.2% in January. Wages and salaries, the
largest component of personal income, increased 0.3% in February, after the same
increase in January.
Current-dollar disposable personal income (DPI) rose 0.3% in
February after rising 0.8% in January; a reduction to the employee social
security contribution rate and the expiration of a Making Work Pay tax credit
boosted DPI in January.
Real DPI, income adjusted for inflation and taxes, decreased
0.1% in February after increasing 0.5% in January.
Real consumer spending, spending adjusted for price changes,
rose 0.3% in February following no change in January.
PCE prices increased 0.4% in January after increasing 0.3%
in January. Excluding food and energy, the PCE (personal consumption
expenditure) price index increased 0.2% in February after the same increase in
Personal saving rate
Personal saving as a percentage of DPI was 5.8% in February, compared with
6.1% in January
Breaking down the economic data, with Scott Nations, NationsShares; CNBC's Steve Liesman and, Rick Santelli: