U.S. Consumer Spending Rises 0.2 pct in Feb

U.S. consumer spending rose 0.2 percent in February, a second straight month of increase after a record six consecutive months of declines, the Commerce Department reported Friday.

The February gain followed an increase of 1 percent in January.

Personal income, the fuel for future spending, declined by 0.2 percent in February, offsetting a 0.2 percent gain in January.

Americans' disposable personal income, or after-tax income, decreased by 0.1 percent in February after having gained 1.6 percent in January.

Consumer spending accounts for two thirds of overall economic activity and is a major force pushing the economy to grow.

Some analysts believe that spending could falter in coming months as the economy is struggling through a persistent housing slump and a credit crunch.

Source: CRIEnglish