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UPDATE:Personal Incomes and Spending in the U.S. increased by a lower than expected rate in January, data from the Bureau of Economic Analysis shows.
Incomes in the country increased by 0.3 per cent, or $37.4 billion, in January, while spending advanced 0.2 per cent, or $23.2 billion.
Economists polled by Bloomberg were looking for incomes to gain 0.5 per cent in the month, with spending up 0.4 per cent.
“Personal income in January was reduced by the expiration of refundable tax credits within ‘other’ government social benefits to persons, by annual adjustments to personal contributions for government social insurance (a subtraction in the calculation of personal income), and by lump-sum social security benefit payments that had boosted December personal income,” the BEA said in a statement.
The advance is nonetheless welcome news for an economy still on shaky footing, and comes on the heels of strong reports from the nation’s retail market.
Personal savings declined slightly month-on-month in January, dipping 10 basis points to 4.6 per cent.
Just minutes away from the first key announcement of the day: Personal Income and Personal Spending in the U.S.
Economists polled by Bloomberg forecast an increase in incomes of 0.5 per cent in January, with spending gaining 0.4 per cent.
The Bureau of Economic Analysis will release the figures at 8:30 a.m. EST.