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article imageUS consumer spending rises more than income in January

By AFP     Mar 3, 2014 in Business

US consumer spending rose more than personal income in January, government data released Monday showed.

Consumer spending, the main driver of the US economy, climbed 0.4 percent in January from December, while income grew 0.3 percent, the Commerce Department said.

The report also revealed significantly weaker consumer spending in December, the crucial year-end holiday shopping month. Spending growth in December was revised lower to 0.1 percent, compared to the prior estimate of 0.4 percent.

For January, analysts had estimated a 0.1 percent gain for spending, while the income rise was in line with expectations.

Inflation remained well below the Federal Reserve's 2.0 percent target for price stability.

The personal consumption expenditures price index edged up 0.1 percent in January, slowing from a 0.2 percent rise in December, and was up just 1.2 percent year-on-year.

Excluding food and energy, core PCE prices rose 0.1 percent for the second consecutive month, and 1.1 percent from a year ago.

The personal saving rate was unchanged from December at 4.3 percent of disposable personal income.

For all of 2013, consumer spending rose 3.1 percent, slowing from 4.1 percent in 2012. Personal income was up 2.8 percent, compared with a gain of 4.2 percent the prior year.

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