Personal income, including wages, salaries and income from such sources as rent, is projected to have grown at a 0.3 percent annual rate in February, the same as in January, based on the median forecast of 70 economists polled by Reuters.
NEW YORK (Reuters) - U.S. incomes probably continued to grow at a moderate pace in February, according to a Reuters poll, while underlying inflation pressures are likely to have eased.
Personal income, including wages, salaries and income from such sources as rent, is projected to have grown at a 0.3 percent annual rate in February, the same as in January, based on the median forecast of 70 economists polled by Reuters.
Personal consumption is likely to have risen just 0.1 percent following a 0.4 percent increase in January.
The widely watched gauge of inflation pressures, the core personal consumption expenditure price index, or PCE, is expected to have risen just 0.1 percent.
!ADVERTISEMENT!The core PCE strips out often-volatile food and energy costs.
The report is due on Friday at 8:30 a.m.
The following is a selection of comments from economists:
UBS
Forecasts:
Personal Income +0.2 pct
Personal cons +0.2 pct
Core PCE Prices +0.2 pct
"Both income and spending were likely close to flat in real terms again in February, consistent with a significant slowing in labor market income and sharp decline in consumer confidence in recent months."
BNP PARIBAS
Forecasts:
Personal Income +0.1 pct
Personal cons -0.1 pct
Core PCE +0.1 pct
"Personal income is forecast to rise by 0.1 percent in February, its slowest rate of growth since April 2007. Weakness in wages and salaries is due to the declines in the labor force and the job losses in well paid goods-producing industries such as construction and manufacturing."
MERRILL LYNCH
Forecasts:
Personal Income +0.2 pct
Personal Spending +0.1 pct
Core PCE y/y +2.0 pct
"Data from the latest CPI report suggests that the core PCE price index (excluding food and energy) will come in flat month-on-month for February, after a 0.3 percent pop last month. This would take the year-on-year to 2.0 percent from 2.2 percent, and back within the Fed's 'comfort zone.' The main difference between the CPI and PCE report is the medical care services component, as it carries more than twice as much weight in the latter."
(Polling by Bangalore Polling Unit)
(Reporting by Burton Frierson; editing by Leslie Adler)
