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US Consumer Spending rises marginally
Consumer spending in the United States only rose marginally in February due to severe winter weather conditions. This raised concerns that the US economy slowed at the start of 2015.
According to data from the Commerce Department, consumer spending rose 0.1 percent gain. This followed a 0.2 percent drop in January. Forecasts were for spending to rise 0.2 percent.
Meanwhile, personal incomes increased 0.4 percent in February for a second month, versus estimates to rise 0.3 percent. Wages and salaries increased 0.3 percent after a 0.6 percent gain in January.
Households cut back on purchases of big-ticket items like automobiles, but a cold snap lifted spending on utilities.
Meanwhile, the core PCE price index inched up 0.1% in February, in line with expectations. On an annualized basis, the core PCE price index rose 1.4%, above forecasts for 1.3%.
The Federal Reserve uses core PCE as a tool to help determine whether to raise or lower interest rates, with the aim of keeping inflation at a rate of 2% or below.
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