Washington, Mar. 28--Consumer spending was flat in February for the second straight month, as war uncertainties, job worries and higher energy prices made people more tightfisted.
Spending on cars and other big-ticket items was cut sharply for the second month in a row, according to the Commerce Department.
Incomes, including wages, interest and government benefits, rose by a modest 0.3% in February, down from a revised 0.4% advance the month before.
January's flat reading on consumer spending also was a bit of an improvement from the government's initial estimate that consumers cut spending by 0.1% during that month.
Economists had forecast growth in personal income in February of just 0.1%, and for spending to be unchanged spending. .
The report showed that disposable personal income, or income after taxes, rose 0.2% after a 0.4% gain in January.
Spending on durable goods, fell 2.2% in February, following a 4.9% drop in the previous month. Spending on nondurable goods, was unchanged in February after rising 1.3% in the previous month. Spending on services, including gas and electric utilities, rose 0.5% in February, up from a 0.3% gain, reflecting higher energy prices.
The income gains coupled with spending restraint brought the savings rate to 4.0% in February, up from 3.8% in January. Commerce had previously reported the January savings rate, which measures savings as a percentage of disposable income, at 4.3%.
Although bad winter weather was a big factor dampening sales at the nation's retailers in February, economists said that consumers are turning more cautious amid the muddled economic climate.
