Consumer Spending in February Flat

Washington, DC, March 28, 2008—Consumer spending in February was the worst in 17 months as the credit crisis, high energy costs and other increasing expenses forced consumers to cut back.

The Commerce Department said Friday that consumer spending edged up 0.1 percent, the poorest showing since September 2006. Spending was actually flat in February when inflation is factored in.

Consumer spending accounts for about two-thirds of total economic activity and is considered a significant measure of economic performance.

Nevertheless, personal incomes rose by a better-than-expected 0.5 percent in February.