Personal consumption expenditures (PCE) increased $27.7 billion or 0.2 percent. Spending on durables edged up 0.2 percent after falling 1.5 percent; spending on services rose 0.3 percent, the same as in January while spending on nondurbales declined 0.2 percent after a 0.6 percent drop.
Real PCE increased by $1.4 billion or less than 0.1 percent. It primarily reflected an increase of $1.0 billion in spending for goods and a $0.5 billion increase in spending for services. Within goods, recreational goods and vehicles was the leading contributor to the increase. Within services, financial services and insurance was the leading contributor to the increase.
Personal income went up by $67.3 billion or 0.4 percent, the same as in January and also in line with market expectations. It primarily reflected increases in wages and salaries and nonfarm proprietors’ income.
Disposable personal income (DPI) increased $53.9 billion or 0.4 percent.
The personal consumption expenditures (PCE) price index increased 0.2 percent after a 0.4 percent rise in January. Excluding food and energy, PCE prices went up 0.2 percent after rising 0.3 percent in January. On the year, the PCE price index went up 1.8 percent, above 1.7 percent in January and the core one increased 1.6 percent, also above 1.5 percent in January. The so-called core PCE price index is the Fed's preferred inflation gauge, targeted at 2 percent.
Savings increased to $497.4 billion in February, the highest level since August 2017, from $471.3 billion in January. The saving rate reached a six-month high of 3.4 percent from 3.2 percent in January.