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FRIDAY March 30, 2007 REAL DISPOSABLE INCOME GROWS 0.1 PERCENT Real disposable personal income, the income available after taxes for spending or saving, increased 0.1 percent in February after increasing 0.6 percent in January, according to the Bureau of Economic Analysis. Real consumer spending increased 0.2 percent, slightly less than in the previous month. Real Disposable Personal Income and Real Consumer Spending Percent change (monthly) 1.0 0.5 0.0 -0.5 -1.0 Feb Mar Apr May Jun Jul Real Disposable Personal Income Aug Sep Oct Nov Dec Jan Feb Real Consumer Spending Personal Income Personal income, a broad current-dollar measure that includes all sources of income, rose 0.6 percent in February, after increasing 1.0 percent in January. Wages and salaries, which account for more than half of personal income, increased 0.4 percent after increasing 1.2 percent in January, when the growth rate was boosted by bonus payments and the exercise of stock options. Real Consumer Spending The slight slowdown in consumer spending in February reflected a slowdown in spending on clothing and shoes as well as furniture and household goods. In contrast, spending on electricity and gas increased. Personal Consumption Expenditure (PCE) Prices The PCE price index rose 0.4 percent in February, after rising 0.2 percent in January. Excluding food and energy, the index increased 0.3 percent, compared with an increase of 0.2 percent. Personal Saving Rate Personal saving as percent of disposable personal income was –1.2 percent in February, the same rate as in January. BEA data—including GDP, personal income, the balance of payments, foreign direct investment, the input-output accounts, and economic data for states, local areas, and industries—are available on the BEA Web site: www.bea.gov. E-mail alerts are also available. NOTE: On April 30, 2007, the March estimates of Personal Income and Outlays will be released. Contact: Ralph Stewart 202–606–2649 Bureau of Economic Analysis, U.S. Department of Commerce