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Spending, personal income up slightly in February

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Spending, personal income up slightly in February

Households are saving more disposable income.

Personal income increased $58.6 billion, or 0.4%, and disposable personal income increased $54.2 billion, or 0.4%, in February, according to the Bureau of Economic Analysis. Consumer spending increased $11.8 billion, or 0.1%.

In January, personal income increased $61.8 billion, or 0.4%, DPI increased $61.5 billion, or 0.5%, and consumer spending decreased $28.5 billion, or 0.2%, based on revised estimates, according to the Bureau of Economic Analysis.

Economists had expected an increase in consumer spending of 0.2%.

This is latest economic data to indicate that the US economy has cooled recently, although most observers believe that the lull is temporary.

Consumer spending was muted by the fact that consumers are saving more of their disposable income.  Personal saving -- DPI less personal outlays -- was $768.6 billion in February, compared with $728.7 billion in January. The personal saving rate -- personal saving as a percentage of disposable personal income -- was 5.8% in February, compared with 5.5% in January.

The full report can be found here.

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