Nominal personal spending increased 0.4% in January, above the 0.2% expected by economists. Inflation was also higher in January, leaving real consumer spending flat for the month. Real spending on durable and nondurable goods fell, while spending on services rose.
Nominal personal incomes grew 0.3% in January, with wages and salaries increasing 0.5% in the month. Economists were expecting a 0.2% increase. After taking inflation into account, incomes rose only 0.1%. Real disposable income have grown just 1.2% in the past year.
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