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Income, spending rise
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March 1, 1999: 9:11 a.m. ET
January data on earnings, spending point to more growth for economy
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NEW YORK (CNNfn) - Americans' earnings rose briskly in January but the pace of spending cooled after a binge at the end of last year, the government said Monday.
Personal incomes grew 0.6 percent in January after falling 0.1 percent in December, the Commerce Department said. Meanwhile, consumer spending rose 0.3 percent following a 0.7 percent jump the month before.
Earnings grew faster than the 0.4 percent forecast by private economists. The growth in spending matched forecasts of 0.3 percent.
The data are the latest pointing to steady growth after the economy grew at a blistering 6.1 percent rate in the fourth quarter and 3.9 percent for all of 1998.
Income from wages, salaries, dividends, interest and rents totaled $7.32 trillion in January, up from $7.27 trillion in December. Spending totaled $5.98 trillion, up from $5.96 trillion.
The growth in income and slightly lower taxes allowed consumers to save a bit after they dipped into savings in December. The savings rate, which measures income left over after spending, was 0.1 percent in January, up from a negative 0.3 percent in December, the department said.
Income and spending are important because consumers account for two-thirds of the economy. Other reports last week pointed to strong growth continuing into 1999 as home sales rose to a record in January and consumer confidence jumped to its highest level in six months. 
-- from staff and wire reports
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Commerce Dept.
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