U.S. consumer spending rose in March

April 29, 2013 at 10:05 AM

WASHINGTON, April 29 (UPI) -- Consumer spending rose 0.2 percent in March, climbing more than expected, the U.S. Commerce Department said Monday.

Economists had expected spending to be flat for the month after rising 0.7 percent in February.

Although the spread between expectations and the actual gain appear small, consumer spending accounts for an estimated 70 percent of the country's gross domestic product, which means small differences add up.

Investors consider economic forecasts and when economic data later differs they adjust their positions accordingly.

Personal spending rose by $21 billion in March while personal incomes increased 0.2 percent, or by $30.9 billion, after rising 1.1 percent in February.

Disposable income, which also rose 1.1 percent in February, was up by $20.7 billion, or 0.2 percent, in March, the department said.

Wages rose for the second consecutive month, gaining $14.9 billion in March after a solid $44.6 billion gain in February. Wages at manufacturing jobs fell by $100 million in March after rising in February.

At service-oriented jobs, payrolls increased by $15 billion after a jump of $29.5 billion in the previous month.

Personal savings in March totaled $329.1 billion, down from $330.9 billion in February. The savings rate -- personal savings as a percentage of disposable income -- rose to 2.7 percent from 2.6 percent, the department said.

Like Us on Facebook for more stories from UPI.com  
Latest Headlines
Top Stories
Compact cannon for British armored vehicles
Brazil orders search-and-rescue aircraft
Hess completes Bakken joint venture
BP settles with U.S. coastal states for $18.7 billion
Whole Foods apologizes for overcharging customers