Personal Income and Consumption Rose Slightly in February

Personal income increased 0.2 percent, $23.7 billion, in February, according to the Bureau of Economic Analysis, down from a 0.5 percent gain in January. Personal consumption expenditures also increased, rising 0.1 percent, or $11.0 billion.

Real disposable income – personal income less personal taxes – increased 0.3 percent in February, the same as the January rate.

The personal savings rate – personal savings as a percentage of personal income – was 5.4 percent, up 10 basis points from January’s rate.

Wages and salaries fell $9.4 billion, compared to a $46.5 billion increase in the previous month. The majority of the decline was due to a $12.9 billion dollar drop in private sector wages. In contrast, government wages increased by $3.5 billion.

The price index for PCE fell 0.1 percent in February, compared to a 0.1 percent January increase. Excluding food and energy, the index increased by 0.1 percent.

Read the BEA release.