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Personal income and spending misses expectations
Chris Hondros/Getty Images Cash is so old school. Personal income rose less than expected while personal spending fell more than expected in January.
Income rose 0.3% in January while spending fell 0.2%.
Expectations were for personal income to rise 0.4% over the prior month with spending expected to decline 0.1%.
This report also includes the personal consumption expenditures deflator, a measure of inflation, which showed that prices fell 0.5% in January and rose 0.2% on a "core" basis.
The deflator was expected to show prices declined 0.5% over last month and rise 0.1% on a "core" basis, which exclude the more volatile cost of food and energy.
In a note to clients following the report, Ian Shepherdson at Pantheon Macro said that s pending was flattered by surging utility demand.
Shepherdson noted, however, that the 0.2% drop in the deflator means that real spending rose a "respectable" 0.3% in January, getting the first quarter off to a good start.
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