Consumer spending rose 0.7% in February

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U.S. consumers increased spending for an eighth straight month in February, but much of the gain went to cover rising food and energy costs, providing only a modest lift to the economy.

Although the report from the Commerce Department on Monday was the latest to suggest that the rising cost of living would dent growth in the first quarter, the recovery from the worst recession since the 1930s remains intact.

Personal spending rose 0.7% in February, before adjusting for inflation, after rising 0.3% in January. Incomes rose 0.3% after rising 1.2% in January.

Prices rose 0.4%, the most in just over 11/2 years. Consumer spending accounts for about 70% of U.S. economic activity.


http://www.latimes.com/business/la-fi-economy-20110328,0,971334.story

[xchrom]

1. recommend

[CanonRay]

2. How much of that risein incomes is in the upper 2%

and how much of that rise in consumer spending is due to INFLATION? These stats are all becoming meaningless.