The increase came below market expectations while income rose more than forecasted.
Disposable personal income (DPI) increased $54.2 billion, or 0.4 percent.
In January, personal income increased $61.8 billion, or 0.4 percent, DPI increased $61.5 billion, or 0.5 percent, and PCE decreased $28.5 billion, or 0.2 percent, based on revised estimates.
Real DPI increased 0.2 percent in February, compared with an increase of 0.9 percent in January. Real PCE decreased 0.1 percent, in contrast to an increase of 0.2 percent.
Wages and salaries increased $23.9 billion in February, compared with an increase of $47.3 billion in January. Private wages and salaries increased $21.9 billion, compared with an increase of $44.2 billion. Government wages and salaries increased $2.1 billion, compared with an increase of $3.1 billion. Pay raises for federal civilian personnel added an additional $0.6 billion to the change in government payrolls in February; pay raises for federal civilian and military personnel added $2.2 billion to government payrolls in January.