US consumer spending and personal income both rose 0.6% in February, official reports showed today, surprising analysts expecting hits from slowing economic conditions.
The Commerce Department report on income and spending showed both figures well ahead of the 0.3% gains projected by private economists.
The report also showed inflation as measured by the personal consumption expenditures price index rose 0.4% in February, bringing the year-over-year increase to 2.3%.
Core inflation, which excludes volatile food and energy prices and is considered by the Federal Reserve to be a better barometer of prices, rose 0.3% in the month, the fastest monthly gain since August.
The reports appeared to suggest the economy, which relies on consumer spending for two-thirds of economic activity, is not softening as much as some analysts have predicted.
Fed chairman Ben Bernanke has argued that the weakness in housing has not yet spilled over to other segments of the economy and that growth will remain in the 'moderate' range.
