US consumer spending, income fall in February

[WASHINGTON] US consumer spending fell more than expected in February as a cold snap gripped many parts of the country and the boost from a second round of stimulus checks to middle- and lower-income households faded, though the decline is likely temporary.

Consumer spending, which accounts for more than two-thirds of US economic activity, dropped 1.0 per cent last month after rebounding 3.4 per cent in January, the Commerce Department said on Friday. Personal income tumbled 7.1 per cent after surging 10.1 per cent in January. Economists polled by Reuters had forecast consumer spending decreasing 0.7 per cent in February and income declining 7.3 per cent.

REUTERS