Most Active Stories
- Forest Service at LBL Cancels Controversial Pisgah Bay Project As Proposed
- Murray Police Respond to WATCH Center; 1 Man Dead from Believed Self-Inflicted Gun Shot
- Kentucky Legislators Grill Cabinet Officials for Not Disclosing Fraud-Comitting WIC Vendors
- Rand Paul Is Skipping Fancy Farm and Why That Matters
- UK Officials Propose $16 Million Dollar Expansion at Princeton Research Center
Fri March 29, 2013
Consumer Spending Rose 0.7 Percent In February; Higher Gas Prices A Factor
Originally published on Fri March 29, 2013 9:30 am
There was a slightly larger-than-expected increase of 0.7 percent in consumer spending from January to February, the Bureau of Economic Analysis says.
Higher gasoline prices, though, were much of the reason for the rise. According to the bureau, if spending is adjusted for inflation the increase was a more modest 0.3 percent — the same as in January. And higher energy costs were behind most of the inflationary pressures last month.
Consumer spending is closely watched because consumers buy about 70 percent of all the goods and services that companies produce — meaning they drive the economy.
Meanwhile, personal income shot up 1.1 percent.