-- Personal income fell by 0.1% in February following January's 0.4% gain, compared with the expected 0.3% gain in a survey conducted by Bloomberg as of 7:35 am ET.
Personal consumption expenditures were up 0.5%, below the 0.6% increase expected and following a 0.3% gain in the previous month. After adjustment for inflation, real PCE rose by 0.1% after a flat reading in January, compared with expectations for a 0.2% increase.
The PCE price index rose by 0.4%, as expected, the year-over-year rate remained at 2.8%. The price index increased by 0.3% month-over-month in January.
The core PCE price index increased by 0.4%, as expected, and the same as in January. The year-over-year rate dropped to 3% from 3.1% in the previous month.
The monthly report on personal income and spending is released by the Bureau of Economic Analysis about one month after the period it is measuring. Personal income is broken down into various categories, with wages making up the largest portion. Spending is reported in two ways-before and after adjustment for inflation movements.
The price measures in the report are closely watched by the Federal Reserve, particularly the year-over-year. Faster consumption growth is usually a positive for stocks but combined with soft income readings could suggest consumers are overextending. Bonds are sensitive to the price measures if the pace is above the Federal Reserve's 2% target.