U.S. consumer spending climbs 0.7% in February
WASHINGTON (MarketWatch) - Consumer spending in the U.S. rose 0.7% in February to mark the fourth straight increase, though a large chunk of the money went to pay for higher gasoline prices. Personal income, meanwhile, climbed even faster at 1.1% and inflation-adjusted disposable income advanced 0.7%, the Commerce Department said Friday. Economists surveyed by MarketWatch had forecast spending to rise by 0.6%, seasonally adjusted, with a 1.0% gain in personal income. Since incomes rose more than spending, the personal savings rate edged up to 2.6% from 2.2%, but it remained near a five-year low. Also, inflation as gauged by the core PCE price index increased 0.1% in February. The index is up 1.3% in the past 12 months, unchanged from January. The overall PCE index advanced a sharper 0.4% last month, largely because of higher fuel costs. The increase in spending in January, meanwhile, was revised up to 0.4% from an initial read of 0.2%. The drop in income in January was little changed at 3.7%.