US personal income, spending slow down in February

By Ovunc Kutlu

ISTANBUL (AA) – Americans' personal income and spending slowed down in February, compared to the previous month, according to official figures released Friday.

Personal income rose 0.3%, or $72.9 billion, in February from the previous month, showed data by the Commerce Department's Bureau of Economic Analysis.

The figure came higher than the market expectation of a 0.2% increase, but it was down from a 0.6% gain in January.

"The increase in current-dollar personal income in February was led by an increase in compensation, mainly from wages and salaries. Private wages and salaries for services-producing industries and government wages and salaries increased," the agency said in a statement.

Personal spending showed even a harder slowdown, rising only 0.2%, or $27.9 billion, in February from the previous month.

The figure also came lower than the market expectation of a 0.3% increase, while it marks a sharp softening from a 2% gain in January.

The agency said there was an increase of $25.8 billion in spending for services and a gain of $2 billion in spending for goods, during the month of February.