Sluggish income growth continued in February, according to data released by the U.S. Bureau of Economic Analysis. Adjusted disposable personal income increased by 3.1%, the lowest monthly rate in almost two years, and lower than January’s revised estimate of a 3.5% increase.
Revised data also showed that the personal savings rate dipped to 3.7% from 4.3% last month, as personal savings plunged from $509 billion to $439 billion.
Consumer Spending remained stable in February, however, rising 4.1% year-on-year for the third month in a row. Spending growth on both durable and nondurable goods slowed, while services spending growth increased.
On a smoothed annualized basis, spending on food slightly outpaced the overall rate. Spending on gasoline and other energy categories increased by double digits, however.