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Nominal personal income increased at a nonannualized rate of 0.3 percent in February, following a similar 0.3 percent increase in January. Over the past year, nominal personal income has increased 3.1 percent. Disposable personal income (DPI)— personal income less current personal taxes—also increased at a nonannualized rate of 0.3 percent; and after controlling for price changes, real disposable personal income increased 0.3 percent for the month as well. The monthly improvement in real DPI follows a 0.3 percent decline in December and a 0.2 percent increase in January. Since February 2013, real disposable personal income has increased 2.1 percent.
Real personal consumption expenditures increased 0.2 percent in February. This follows a 0.1 percent decline in December and a 0.1 percent increase in January. On a year-over-year basis, consumption has increased 2.1 percent. Contributing to the gain in February were increases in both goods and services consumption. Consumption of durable goods increased 0.1 percent, while consumption of nondurable goods increased 0.3 percent. Services consumption was up 0.2 percent for the month. On a year-over-year basis, goods consumption has increased 1.9 percent and services consumption has increased 1.5 percent. The personal savings rate, which is personal saving as a percentage of disposable personal income, ticked up from 4.2 percent in January to 4.3 percent in February.