US Feb spending rises while inflation cools: The Conference Board

However, inflation-adjusted gains in disposable personal income stalled for a second month as savings dropped and interest payments on debt rose, wrote Erik Lundh, a principal economist at the think tank.

“We remain pessimistic about the sustainability of consumer spending and expect a pull back over the summer,” he wrote.

Personal consumption expenditures rose by 0.8 per cent MoM (in nominal terms) in February compared to 0.2 per cent MoM in January.

After accounting for inflation, real consumer spending was up by 0.4 per cent MoM in February, with spending of goods rising by 0.1 per cent MoM.

Overall personal income rose by 0.3 per cent MoM (in nominal terms) in February compared to a rise of 1 per cent MoM in January. When factoring in inflation, the real MoM growth rate was minus 0.1 per cent.

In year-on-year terms, real personal income rose by 2.1 per cent in February from 2.4 per cent in January.

Fibre2Fashion News Desk (DS)