US personal spending increased 0.1% in February

The latest US Commerce Department data release showed personal spending growth slowed in February as expected as consumers saved their income.

Personal spending matched estimated of 0.1%. Personal income rose 0.2%, beating the estimated figure of 0.1%. The saving rate thus jumped to one-year high.

Meanwhile, the core personal consumption expenditure m/m dropped 0.1%, leading to a annualized figure of 0.1%, which was slightly less than estimated figure of 0.2%. This inflation gauge is preferred by Federal Reserve policy makers and has not met their 2 percent goal since April 2012.

It remains to be seen if the jump in the savings rate to a one-year high translated into higher consumption in March.

The latest US Commerce Department data release showed personal spending growth slowed in February as expected as consumers saved their income.

(Market News Provided by FXstreet)