Most Active Stories
- Is the Bay Area in a housing bubble or a housing crisis?
- Mission High and Bi-Rite Market partner in a neighborhood divided
- Robotic seals comfort dementia patients but raise ethical concerns
- Robots for humanity: how technology is changing the life of one Bay Area man
- Audiograph's Sound of the Week: The Church of Coltrane
Consumer Spending Rose 0.7 Percent In February; Higher Gas Prices A Factor
Originally published on Fri March 29, 2013 7:30 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.