Personal Spending Flat in February

Personal spending was unchanged in February, according to a government report, but a survey of consumers showed that consumer confidence hadn’t fallen as far as previously thought.

The Commerce Department said that for the second month in a row, personal spending was unchanged at a rate of about $7.49 trillion in February. Previously, the government had reported a slight decline of 0.1% in January in personal spending, before revising to no change.

The University of Michigan said that in its final report on consumer sentiment in March, it was revising its figure to 77.6 from its previous estimate of 75.0 (Click here for related coverage). In February, the university's index read 79.9.

In addition to its personal spending report, Commerce said that personal income rose 0.3% in February after a revised increase of 0.4% in January.

Consumer sentiment often drives spending, which accounts for two-thirds of all economic activity in the United States.

Analysts said that uncertainty surrounding the war and higher energy prices were combining to stall spending in the early part of 2003.