Consumer spending rises 0.3% in February

Consumer spending rises 0.3% in February

Consumer spending in the U.S. rose in February at the fastest rate since November as Americans spent more on health care and utilities, but purchases of durable goods fell for the third straight month in a negative sign. Spending climbed 0.3% last month on a seasonally adjusted basis, the Commerce Department reported Friday. Partly offsetting the gain, however, was a reduction in rate of spending in January. Spending increased at a 0.2% clip in the first month of the year instead of 0.4% as previously reported. Personal income also rose 0.3% in February. Economists surveyed by MarketWatch had forecast a 0.3% gain in spending and a 0.2% rise in income. The U.S. savings rate edged up to a four-month high of 4.3% from 4.2% in January. Inflation-adjusted disposable income, meanwhile, jumped 0.3% to mark the biggest advance in five months. Also, inflation as gauged by the core PCE price index posted a slight 0.1% increase in February, and it's up just 1.1% over the past 12 months. The overall PCE index also rose 0.1% last month and its climbed 0.9% in the past year, offering further evidence that inflation remains muted