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Thursday, November 21, 2024
HomeNewsEconomyPersonal Income Fell Significantly in February, Consumer Spending Weaker than Expected

Personal Income Fell Significantly in February, Consumer Spending Weaker than Expected

American flag and U.S. dollar financial and economy concept. (Photo: AdobeStock)
American flag and U.S. dollar financial and economy concept. (Photo: AdobeStock)
American flag and U.S. dollar financial and economy concept. (Photo: AdobeStock)

Washington, D.C. (PPD) — Personal income fell $1,516.6 billion (7.1%) in February, roughly the consensus forecast, while consumer spending was weaker than expected. Personal outlays fell by $141.5 billion in February.

Forecasts for personal income ranged from a low of -8.0% to a high of 2.8%, with the consensus -7.1%. The decline was largely the result of distortions from the stimulus payments that artificially drove up the upwardly revised 10.1% figure for January.

Disposable personal income (DPI) declined $1,532.3 billion (8.0%) and personal consumption expenditures (PCE), better known as consumer spending, was down more than expected by $149.0 billion (1.0%). Forecasts for PCE ranged from a low of -1.2% to a high of 0.6%, with the consensus -0.7%.

Personal saving was $2.41 trillion in February and the personal saving rate — defined as personal saving as a percentage of disposable personal income — was 13.6%.

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PPD Business, the economy-reporting arm of People's Pundit Daily, is "making sense of current events." We are a no-holds barred, news reporting pundit of, by, and for the people.

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