US personal incomes grow more slowly than expected in February

Americans remained a bit more cautious than expected on spending at the start of the year, although inflation was slightly better behaved than anticipated too.

According to the Department of Commerce, so-called personal consumption expenditures rose by just 0.1% in January, versus economists' forecasts for growth of 0.3%.

Meanwhile, in February US personal incomes grew at a month-on-month pace of 0.2%, Commerce said, falling short of forecasts calling for an increase of 0.3% and following a dip of a tenth of a percentage point during the previous month.

Inflation pressures were nevertheless well-behaved, with the year-on-year rate of growth in the price deflator for personal consumption expenditures slipping from 1.8% in December to 1.4% for January, as anticipated.

But at the 'core' level, or stripping out food and energy prices, the headline rate of PCE prices retreated from 1.8% to 1.4%.