US Personal income up more than expected

U.S.
personal income rose more than expected in February as the economy teetered on
the brink of a possible recession, while both personal spending and a key price
measure increased only slightly, a government report showed on Friday

The Commerce Department reported that February personal
income rose by 0.5 percent, exceeding a forecast of 0.3% made by analysts
polled before the report.

The department said personal spending increased 0.1% in
February, in line with expectations, after a 0.4% gain in January.

The personal consumption expenditure price index, a key
measure of inflation, rose 0.1 percent in February after a downwardly revised
increase of 0.3% in January. Excluding volatile food and energy costs, the
personal consumption expenditure index also rose just 0.1%, in line with
analyst expectations.

On a year-over-year basis, this core index rose 2.0%,
matching the prior months’ gain, which was downwardly revised from 2.2%.

The personal savings rate was 0.3% in February after a negative 0.1% in
January.