Consumer Income, Spending Rise in January

Washington, DC, Feb. 28, 2011 -- Personal income rose a seasonally adjusted 1.0% in January, marking the biggest increase in a year and a half, according to the Commerce Department.

Meanwhile, consumer spending rose a smaller 0.2%. The increase in income was due mostly to the one-year reduction in worker contributions to Social Security that took effect in January.

Economists had forecast a 0.9% in personal income and a 0.4% increase in consumer spending.