U.S. consumer spending rises 0.6 percent in February

U.S. consumer spending rose by 0.6 percent in February, the best showing since December, while personal incomes also advanced 0.6 percent, the Federal Reserve reported Friday.

The February rise in consumer spending followed an unrevised 0.5 percent gain in January and was double the 0.3 percent increase expected by analysts.

The advance in personal incomes was below the unrevised 1.0 percent gain in January but double the 0.3 percent increase forecast by analysts.

Core consumer prices, which exclude volatile energy and food costs, were up 0.3 percent in February, the biggest increase since last August.

The 0.3 percent increase came after core consumer prices, an inflation barometer, rose by 0.2 percent in January. Analysts had been forecasting a 0.2 percent gain for February.

Over the past 12 months, core consumer prices increased by 2.4 percent, higher than the Federal Reserve's comfort zone of 1 to 2 percent.

Americans' personal saving rate -- savings as a percentage of after-tax income, was unchanged in February at a negative 1.2 percent, marking the 23rd consecutive month that the saving rate remained in negative territory.

A negative saving rate means that Americans are borrowing or dipping into savings to finance their consumption.

Source: Xinhua