(MENAFN) According to official figures released by the Commerce Department's Bureau of Economic Analysis, Americans' personal income and spending experienced a slowdown in February compared to the previous month. Personal income rose 0.3 percent, or USD72.9 billion, which was higher than the market expectation of a 0.2 percent increase. However, it was down from a 0.6 percent gain in January.
The Bureau of Economic Analysis stated that the increase in current-dollar personal income in February was led by an increase in compensation, mainly from wages and salaries. Private wages and salaries for services-producing industries and government wages and salaries increased, contributing to the overall increase in personal income.
On the other hand, personal spending showed an even harder slowdown, rising only 0.2 percent, or USD27.9 billion, in February from the previous month. This figure was lower than the market expectation of a 0.3 percent increase, and it marks a sharp softening from a 2 percent gain in January. The agency noted that there was an increase of USD25.8 billion in spending for services and a gain of USD2 billion in spending for goods during the month of February.
The COVID-19 pandemic has had a significant impact on the US economy, with many businesses forced to shut down or reduce their operations, leading to job losses and reduced consumer spending. The government has implemented various measures to mitigate the impact of the pandemic, including financial assistance to individuals and businesses, tax breaks, and measures to boost employment.
The slower growth in personal income and spending in February may be attributed to a range of factors, including the ongoing impact of the pandemic, rising inflation, and supply chain disruptions. Policymakers and businesses will need to monitor the situation closely and take steps to address any underlying issues that may be contributing to the slowdown in growth. Overall, the figures suggest that the US economy is still on the path to recovery, but there is still much work to be done to ensure sustained growth and stability in the future.
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