Personal income increased 0.3 percent in February, the U.S. Commerce Department reported today, but after factoring in taxes and inflation real disposable income decreased 0.1 percent in contrast to an increase of 0.5 percent in January.
“The good news in today’s report is that wages and salaries – an important and large component of personal income – are strong and rising,” said U.S. Commerce Department Chief Economist Mark Doms.
Real consumer spending rose by .3 percent last month, as savings rates declined. As a percentage of disposable income, personal saving was 5.8 percent in February, compared with 6.1 percent in January. Personal saving fell from $676.7 billion in February compared with $710.5 billion in January.