Official figures show that US consumer spending rose as expected in February for a fifth straight month. The figures from the Commerce Department also showed that stagnant incomes pushed savings to their lowest level since October 2008.
Spending increased 0.3% after rising by a slightly downwardly revised 0.4% in January. Consumer spending in January was previously reported to have increased 0.5%.
Consumer spending normally accounts for over two-thirds of US economic activity.
Wage income was flat in February as consumers continued to struggle to obtain cash. The savings rate in February slipped to 3.1%, its lowest since October 2008, as consumers spend at a faster pace than their incomes.
