Consumer Spending Matches Modest Expectations in February

The Commerce Department on Monday reported consumer spending rose modestly by $11.0 billion, or 0.1% in February, matching the media forecast revealed in a poll by Reuters. Spending, which accounts for more than two-thirds of U.S. economic activity, will likely not be enough to boost gross domestic product (GDP) beyond the previously estimated, historically weak rate of around 2%.

Meanwhile, personal income rose by $23.7 billion, or 0.2% in February, topping the median estimate for a rise of 0.1%.

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.

                                        2015                                            2016
                                        Oct.            Nov.            Dec.            Jan.            Feb.
                                                       (Percent change from preceding month)
Personal income, current dollars        0.3             0.3             0.3             0.5             0.2
Disposable personal income:
 Current dollars                        0.2             0.2             0.3             0.4             0.2
 Chained (2009) dollars                 0.2             0.1             0.3             0.3             0.3
Personal consumption expenditures:
 Current dollars                        0.2             0.4             0.1             0.1             0.1
 Chained (2009) dollars                 0.1             0.3             0.2             0.0             0.2