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The U.S. Commerce Department released personal spending and income figures on Monday. Personal spending climbed 0.1% in February, in line with expectations, after a 0.1% increase in January. January's figure was revised down from a 0.5% gain.
The lower spending was driven by a drop in spending on goods. Spending on goods slid 0.7% in February, while spending on services rose 0.4%.
Consumer spending makes more than two-thirds of U.S. economic activity. Consumer spending grew 2.0% in the fourth quarter, after a 3.0% increase in the third quarter.
This data suggests that American consumers remained cautious.
The saving rate increased to 5.4% in February from 5.3% in January. It was the highest level since 2012.
Personal income increased 0.2% in February, exceeding expectations for 0.1% rise, after a 0.5% gain in January.
The personal consumption expenditures (PCE) price index excluding food and energy rose 0.1% in February, missing forecasts of a 0.2% increase, after a 0.3% gain in January.
On a yearly basis, the PCE price index excluding food and index remained unchanged at 1.7% in February.
The PCE index is below the Fed's 2% inflation target. The PCE index is the Fed's preferred measure of inflation.
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