WASHINGTON, Feb. 28 (UPI) -- Consumer spending rose 0.2 percent in January while incomes rose 1 percent, the U.S. Bureau of Economic Analysis reported Monday.
The bureau said the rate of spending growth slowed from December's 0.5 percent gain, despite payroll tax breaks that went into effect in the month. Economists had expected less of a gain in incomes, but more of a gain in spending.
Spending was predicted to rise 0.4 percent, while incomes were expected to rise 0.3 percent.
Spending for December was revised lower. A month ago, spending in December was reported at a 0.7 percent gain.
Real disposable income rose 0.4 percent in January and savings was 5.8 percent as a percentage of disposable income compared to 5.4 percent in December.
Core prices, which exclude food and energy costs, rose 0.1 percent in the month, in line with expectations and consistent with December's core price increase of less than 0.1 percent.