Most Active Stories
- Cellphone Service Down For Thousands, But Regulators May Never Know Why
- Jewish Federation of Greater Chattanooga Hosts Enthusiastic Visitors
- Start It Up Episode 33: New Private Equity Firm Seeks Acquisitions
- Arthur Golden (Finally!) Has A New Novel Coming Out. Here's What He Told WUTC.
- Start It Up Episode 32: Angel Summit To Bring Investors to Chattanooga
Consumer Spending Rose 0.7 Percent In February; Higher Gas Prices A Factor
Originally published on Fri March 29, 2013 10:30 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.