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U.S. Personal Income And Spending Both Rise More Than Expected

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Personal income and spending in the U.S. both rose by more than expected in the month of January, according to a report released by the Commerce Department on Friday.

The Commerce Department said personal income increased by 0.5 percent in January after rising by 0.3 percent in December. Economists had expected income to climb by 0.4 percent.

Disposable personal income, or personal income less personal current taxes, also rose by 0.5 percent in January following a 0.3 percent increase in the previous month.

Additionally, the report said personal spending climbed by 0.5 percent in January after inching up by 0.1 percent in December. Spending had been expected to rise by 0.3 percent.

Real spending, which is adjusted to remove price changes, increased by 0.4 percent in January on the heels of a 0.2 percent uptick in December.

The matching increases in income and spending kept personal saving as a percentage of disposable personal income at 5.2 percent.

On the inflation front, the Commerce Department said its personal consumption expenditures price index inched up by 0.1 percent in January after edging down by 0.1 percent in December.

The annual rate of growth by the PCE price index showed a substantial acceleration to 1.3 percent in January from 0.7 percent in December.

Core PCE prices, which exclude food and energy prices, rose by 0.3 percent in January after ticking up by 0.1 percent in December. Annual growth also accelerated to 1.7 percent from 1.5 percent.

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