One important point.
Still consuming savings.
* * * * * J B K * * * * *
San Francisco
Consumers tapped their savings in February to keep spending on an upward path for a fifth straight month, implying that consumption may be strong enough in coming months to keep a recovery going.
The rise in spending despite flat incomes in February suggests households were becoming positioned to pick up the baton from the government and a spate of inventory-rebuilding as the prime drivers of growth.
"Consumers are getting more comfortable, which is an essential ingredient for a sustainable recovery. The Federal Reserve should be pleased to see steady spending growth, but will not raise rates until the job picture improves," said Chris Low, chief economist at FTN Financial in New York.
Spending increased 0.3 percent last month after rising 0.4 percent in January, the Commerce Department said on Monday. The gain was in line with market expectations. Spending normally accounts for about 70 percent of U.S. economic activity.
