Consumer spending increases 0.2 percent in January

Feb. 28 (UPI) -- Consumer spending increased 0.2 percent in January while incomes rose 0.6 percent, according to the latest statistics released Friday by the Bureau of Economic Analysis.

The report said personal consumption expenditures increased by $29.6 billion, or 0.2 percent, while incomes jumped $116.5 billion, or 0.6 percent in January compared with the prior month. The rise in incomes was the largest increase in almost a year.

"The increase in personal income in January primarily reflected increases in compensation of employees and Social Security benefit payments [related to annual cost of living adjustments], and other government social benefits to persons, which includes the Affordable Care Act refundable tax credit," the report said.

The report said real PCE, excluding food and energy, increased by 0.1 percent in January. That figure is what experts use to measure inflation, with the Federal Reserve target of 2 percent.

There are concerns Friday's numbers could be affected by the coronavirus if it continues to spread across the globe. Customer Growth Partners estimates retail sales in the U.S. will grow 4.1 percent this year, but could be cut to 2.2 percent if the coronavirus remains in the United States through June.

Coronavirus fears have harmed stock markets around the world this week.