Consumer spending rises for 5th straight month

Consumer spending in the U.S. rose in February for a fifth consecutive month, a rebound that will require gains in employment in order to be sustained.

The 0.3% increase in purchases matched the median forecast of economists surveyed by Bloomberg News and followed a 0.4% advance in January, Commerce Department figures showed Monday. Incomes were unchanged, falling short of expectations as winter storms hurt hiring and hours worked.

“Considering the circumstances, this is a fine performance with the job market still not strong,� said Michael Moran, chief economist at Daiwa Securities America Inc. in New York. “As the labor market comes back, we should see continued support from consumers.�

The lack of change in incomes followed a 0.3% increase in January. The median estimate of economists surveyed called for a 0.1% advance. Wages and salaries were also little changed after climbing 0.4% in January.

Because spending rose and incomes were unchanged, the savings rate fell to 3.1% last month, the lowest level since October 2008.

Adjusted for inflation, spending also climbed 0.3%, the best performance since November. Price-adjusted spending on durable goods, such as autos, furniture and other long-lasting items, fell 0.2% in February.

Purchases of nondurable goods increased 0.9%, the biggest gain since January 2009.