In February, US personal income fell -0.1% mom, or USD 18.2B, undershooting expectations of 0.3% growth. In contrast, personal spending rose 0.5% mom, or USD 103.2B, in line with forecasts, pointing to continued consumption strength despite weaker income dynamics.
On the inflation side, PCE price index rose 0.4% mom, while core PCE also increased 0.4% mom, both matching expectations.
Annually, headline PCE held steady at 2.8% yoy, while core PCE edged down from 3.1% yoy to 3.0% yoy, indicating only a modest easing in underlying price pressures.
