What are you searching for?

Sign in
Company News

US Consumer Spending Rises in February

But most gains tied to energy costs.

Author Image

By: TOM BRANNA

Editor

In an effort to stay warm this winter, Americans burned through cash in February at the fastest pace in seven months, but much of their money went to pay for higher energy costs and incomes rose at a much slower clip.


Personal spending jumped 0.8% in February as personal income edged up 0.2%, the Commerce Department said Friday. Economistshad forecast income would rise by 0.4% and spending by an even larger 0.7%.

Spending was also revised up to a 0.4% increase for January, double the original estimate, while the rise in income was lowered slightly to a 0.2% rate.

Yet with income growth unable to keep up, the faster pace of spending in the first two months of 2012 pushed down the personal savings rate to 3.7% in February from 4.7% at the end of 2011. That’s the lowest savings rate since August 2009.

Keep Up With Our Content. Subscribe To Happi Newsletters