Another indicator of strong - but not excessive - economic growth: Aggregate personal income in the United States climbed 0.7 percent in February, the Commerce Department reported Monday. This was a bit slower than January's 1.5 percent increase.
Personal income is the most important determinant of consumer spending. Because spending dropped 0.7 percent in February, inflationary pressure eased somewhat, and the savings rate climbed to 6.1 percent of disposable income.
February's personal income (before income taxes but after social security taxes) increased an annual $20.9 billion, to $2.922 trillion. Disposable income (after taxes), which differs from personal income, averaged $10,619 a year for every American.