February Consumer Spending Flat

Washington, Mar. 28–Consumer spending was flat in February for the second straight month, as war uncertainties, job worries and higher energy prices made people more tightfisted.
Spending on cars and other big-ticket items was cut sharply for the second month in a row, according to the Commerce Department.
Incomes, including wages, interest and government benefits, rose by a modest 0.3% in February, down from a revised 0.4% advance the month before.
January’s flat reading on consumer spending also was a bit of an improvement from the government’s initial estimate that consumers cut spending by 0.1% during that month.
Economists had forecast growth in personal income in February of just 0.1%, and for spending to be unchanged spending. .
The report showed that disposable personal income, or income after taxes, rose 0.2% after a 0.4% gain in January.
Spending on durable goods, fell 2.2% in February, following a 4.9% drop in the previous month. Spending on nondurable goods, was unchanged in February after rising 1.3% in the previous month. Spending on services, including gas and electric utilities, rose 0.5% in February, up from a 0.3% gain, reflecting higher energy prices.
The income gains coupled with spending restraint brought the savings rate to 4.0% in February, up from 3.8% in January. Commerce had previously reported the January savings rate, which measures savings as a percentage of disposable income, at 4.3%.
Although bad winter weather was a big factor dampening sales at the nation’s retailers in February, economists said that consumers are turning more cautious amid the muddled economic climate.