National News

Mar 28, 2014 8:37 AM by Associated Press

US consumer spending up modest 0.3 percent

WASHINGTON (AP) - Americans spent slightly more in February but the gain still left consumer spending growing at a modest pace, held back by severe winter weather.

The Commerce Department says consumer spending rose 0.3 percent in February following a 0.2 percent rise in January. The spending increases would have been even weaker except for a surge in spending on utility bills. In February, spending on durable goods such as autos actually dropped as consumers stayed away from auto dealerships. Service spending, which covers utility payments, rose.

Income increased 0.3 percent in February, the same amount as January.

Analysts say consumer spending, which accounts for 70 percent of economic activity, slowed significantly in the current quarter and will depress overall economic growth. But they are looking for a rebound in the second quarter.

(Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

»Comments

PLEASE HELP US MODERATE COMMENTS

Offensive or inappropriate comments are subject to removal. To report a comment, please e-mail us at feedback@ksby.com, and include the name of the story and information on the comment.

Thank you! KSBY.com


Most Popular

Top Videos

1 2 3 4