Alexandra Zendrian

Consumer Spending Flat

Despite moderate gains in wages last month, consumers continued to cut back on spending.

 

Consumers continued to cut back on spending last month, while both income and prices inched up, the Commerce Department reported Friday.

Consumer spending, which has been flat for the past three months, accounts for about a third of the gross domestic product.

Personal income rose by 0.5 percent in February, up from 0.3 percent the previous month, the report said. At the same time, prices rose by 0.1 percent, down from 0.3 percent. Personal savings were also up, by 0.3 percent.

By sector, payrolls at goods-producing companies increased by $2.7 billion, more than double the gains in January, while payrolls in the service sector rose by $12 billion, a slower pace than recent months.