US Personal Spending Matches Expectations


Consumer spending in the United States edged up 0.1 percent in February from January of 2016, following a downwardly revised 0.1 percent gain in the previous period. Figures came in line with market forecasts as spending on durable goods went up 0.1 percent and services grew 0.4 percent while consumption of nondurables declined 1.1 percent. The personal consumption expenditure price index dropped 0.1 percent.

Personal income increased $23.7 billion, or 0.2 percent, and disposable personal income (DPI) increased $23.7 billion, or 0.2 percent in February. Personal consumption expenditures (PCE) increased $11.0 billion, or 0.1 percent. In January, spending increased 0.1 percent, compared to an initial estimate of a 0.5 percent rise. Real DPI increased 0.3 percent in February, the same increase as in January.  Real PCE increased 0.2 percent in February, in contrast to a decrease of less than 0.1 percent in January.

Wages and salaries decreased $9.4 billion in February, in contrast to an increase of $46.5 billion in January. Private wages and salaries decreased $12.9 billion, in contrast to an increase of $41.9 billion.  Government wages and salaries increased $3.5 billion, compared with an increase of $4.6 billion. Supplements to wages and salaries increased $2.4 billion in February, compared with an increase of $6.1 billion in January.

The price index for PCE decreased 0.1 percent in February, in contrast to an increase of 0.1 percent in January.  The PCE price index, excluding food and energy, increased 0.1 percent, compared with an increase of 0.3 percent. Year-on-year, the PCE price index increased 1.0 percent and excluding food and energy, increased 1.7 percent from February a year ago.

US Personal Spending Matches Expectations


BEA | Joana Taborda | joana.taborda@tradingeconomics.com
3/28/2016 3:20:41 PM