Personal income and spending rose more than expected in February, according to data released from the Commerce Department.
Both income and spending rose by 0.5% after economists forecasted a 0.1% increase in both.
Economists had forecast that they rose 0.1%. They were revised lower for January, from 0.5% for both to 0.1% and 0% respectively.
The new data also shows an increase in personal consumption expenditures (PCE) of 0.1%. PCE is a gauge of individual spending and Federal Reserve chair Janet Yellen’s preferred method for tracking inflationary numbers.
Core PCE, which excludes volatile food and energy costs, rose 0.1% month-on-month, and 1.7% year-over-year.
Core PCE was expected to rise 0.2% month-on-month, and 1.8% year-over-year.
The Fed looks for a rate of 2% for its inflation target.
The PCE deflator, which measures the average change in prices of all domestically consumed items, shrunk by 0.1% in February.
More data to follow as new data is released from the report.