by Calculated Risk on 3/31/2006 10:32:00 AM

The Bureau of Economic Analysis (BEA) reported Personal Income and Outlays for February today.

Personal income increased $31.5 billion, or 0.3 percent, and disposable personal income (DPI) increased $21.7 billion, or 0.2 percent, in February, according to the Bureau of Economic Analysis. Personal consumption expenditures (PCE) increased $13.1 billion, or 0.1 percent.

The AP's Crutsinger on consumer spending:

Consumer spending, which had soared because of unusually warm weather in January, slowed sharply in February while Americans' incomes grew by the smallest amount in three months.

The Commerce Department reported Friday that personal consumption spending rose by a tiny 0.1 percent last month, the weakest gain in six months. It followed a huge 0.8 percent surge in January that had reflected a mild winter that lured shoppers to the stores to spend their Christmas gift cards.

Also, personal savings remained negative: -0.5% (as a percent of disposable personal income) for both January and February. This is worse than the Q4 2005 rate of -0.2%. In dollars, personal savings was -$43.8 Billion (SA annual rate) for February.

Consumers had to borrow more (or dip into savings) as the increase in spending slowed.