NEW YORK (CNNMoney.com) -- Personal spending rose for a fifth straight month in February, while personal income was virtually unchanged, according to government data released Monday.
The Commerce Department said Individual spending rose 0.3%, or $34.7 billion last month. The figure was in line with the 0.3% rise economists expected, according to a consensus compiled by Briefing.com
Personal income climbed $1.2 billion, or less than 0.1%, during the month, after a 0.3% rise in January. The figure was close to the 0.1% rise expected.
"Today's data was clearly consistent with recent trends," said Scott Hoyt, senior director of consumer economics for Moody's Economy. "Spending isn't blowing us away because consumers are clearly suffering from a lack of income."
Disposable income, personal income minus taxes, rose $1.6 billion or about 0.1%, as taxes fell. In January, disposable income dipped 0.2% or $26 billion.
According to the report, Americans saved $340 billion, or 3.1% of their disposable income in February, compared to an upwardly revised $374.9 billion or 3.4% of disposable income in January.
The report follows another from the government on Friday that said economic growth in the fourth quarter of 2009 grew slightly slower than orignally reported. The Commerce Department had said that gross domestic product, a key measure of economic activity, came in at an annualized rate of 5.6%, compared to an original reading of 5.9%.
Investors have been keeping a close watch on income and personal spending data because consumer spending accounts for two-thirds of U.S. economic activity.
Monday's personal income and spending results show that although the economy's slow recovery is still on track, consumers are still under pressure.
Personal saving dropped for the second straight month, as spending outpaced income. And Hoyt says that personal income, though rising, is essentially flat from last year when transfer payments such as unemployment benefits are excluded.
The American newspaper industry says tariffs on Canadian paper could force it to cut jobs, drop pages or print fewer editions. Some are worried that smaller papers might not survive. More
US regulators are close to slapping Wells Fargo with a $1 billion fine for forcing customers into car insurance and charging mortgage borrowers unfair fees. More
The Justice Department is probing wireless carriers, and that investigation could put the eSIM card rollout on hold. More
In 1998, Ntsiki Biyela won a scholarship to study wine making. Now she's about to launch her own brand. More
The average Arizona teacher is paid less today than in 1999. More