March 31, 2005 8:50 AM, EST

Personal Spending, Incomes Rise in February

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ersonal spending increased for an eighth straight month in February, rising 0.5%, the Commerce Department said Thursday.

The spending increase — which followed a 0.1% increase in January — was coupled with a rise in personal income of 0.3%, Commerce said.

The spending level matched analysts’ expectations, while the income rise was less than a projected 0.4%, Bloomberg reported.

An increase in consumer spending could increase demand for new factory goods and the trucking shipments that get them to stores.

The personal consumption expenditures, or PCE, which measures inflation, rose at a 2.3% annual rate in February, up slightly from 2.2% in January, Commerce said. The PCE excluding food and energy gained 1.6%, the same as January.

February spending on durable goods such as automobiles and furniture rose 0.3% after falling 0.1% on an adjusted basis, Bloomberg reported.

Spending on non-durable goods rose 0.2% following a 1.2% increase in January. Spending on services, which account for about 60% of all purchases, rose 0.2% following a 0.1% increase.