MW: Disposable income falls in Feb. as prices jump
By Greg Robb
WASHINGTON (MarketWatch) - Real disposable income declined in February as consumer prices jumped by the largest amount since July 2008, the Commerce Department reported Monday. The personal consumption expenditure index rose 0.4% in February and the core PCE price index, which excludes food and energy prices, was up 0.2% for the second straight month. The government also reported that real personal incomes fell 0.1% in February for the first time since last September. Nominal consumer spending increased 0.7% in February and nominal personal income rose 0.3%. Income growth was in line with expectations and spending was slightly higher than forecast. The savings rate fell to 5.8% in February from 6.1% in January.
