Consumer Spending and Income Up

Washington, DC, March 31, 2006–Consumer spending rose 0.1% in February, as incomes rose 0.3%, according to a report from the Commerce Department.

Economists were expecting incomes to rise by 0.4% and for spending to rise 0.1%

Prices were unchanged, while core inflation rose 0.1%. The savings rate was negative 0.5%.

The savings rate was negative 0.5%’ this is the eleventh straight month the rate has been in negative territory.

Core prices are up 1.8% in the past 12 months.

Real disposable incomes increased 0.2%, the slowest growth since August.

In January, incomes rose 0.7%. Consumer spending rose a revised 0.8% in January.