US January personal incomes up 1.0 pct, largest rise in a year |
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Thu, 01 Mar 2007 14:48
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WASHINGTON (AFX) - Personal incomes in the US rose at their fastest pace in a year, and twice as fast as consumer spending, as year-end bonuses and government pay rises provided a one-off boost, the Commerce Department said today.Incomes rose 1.0 pct in January after rising 0.5 pct in the prior month, while spending rose by 0.5 pct following a 0.7 pct rise in the in DecemberBoth spending and income surpassed expectations of economists, who had predicted a 0.4 pct rise for spending and a 0.3 pct rise for incomes.Excluding the one-time payouts, the government said personal incomes rose 0.4 pct in the month.Adjusted for inflation, real spending rose 0.3 pct in January after rising 0.4 pct in each of the prior two months. Real disposable incomes, which are inflation-adjusted and measure income after taxes, rose 0.5 pct in January after rising 0.1 pct in December.Inflation as measured by the personal consumption expenditures price index rose 0.2 pct in January after rising 0.3 pct in December. In the past year, the PCE price index has risen 2.0 pct.Core inflation, which excludes food and energy, rose 0.3 pct in the month after rising 0.1 pct in December. That's the fastest pace since August. Core inflation has risen 2.3 pct in the past 12 months, matching the 12 month rise leading up to October.newsdesk@afxnews.comtfn-was-cbd/wash/ppCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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US December consumer spending up 0.7 pct, largest increase since July UPDATE 