Personal Income and Spending Both Up 0.3% for February

Before you go, we thought you'd like these...
Before you go close icon

Americans are making more and spending more, according to a February Personal Income and Outlays report (link opens as PDF) released today by the Commerce Department. 

After bumping up 0.3% for January, personal income increased another 0.3% ($47.7 billion) for February, beating analyst estimates of a 0.2% gain. 

Private wages and salaries increased $13 billion overall, compared to $17.2 billion for January. While services-producing industries' wages and salaries increased $7.8 billion and goods-producing industries added on $5.2 billion to wages and salaries, manufacturing payrolls tapered off $0.3 billion.

Supplements to wages and salaries -- including employer contributions to pensions and for government social insurance such as Social Security -- also increased less, up $2.9 billion for February after gaining $4.9 billion the month before.

While personal income increased incrementally over the past couple months, personal spending has been gaining speed. Spending increased 0.1% for December, 0.2% for January, and 0.3% for February. Analyst predictions for February proved spot on. 

In a potential sign of longer-term economic optimism, durable goods spending edged up 0.1% after falling 0.4% for January.

Looking back over the last 12 months, personal income is up 3.1%, while personal spending has increased 3%. 


The article Personal Income and Spending Both Up 0.3% for February originally appeared on

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

People are Reading