U.S. Personal Income and Spending Continue to Rise in February

Consumer income and expenditures grew steadily, supporting ongoing economic activity.

In February 2025, personal income in the United States increased by $194.7 billion. This marked a 0.8% rise from the previous month, according to the U.S. Bureau of Economic Analysis. Disposable personal income, which is income after taxes, rose by $191.6 billion or 0.9%.

Spending also picked up. Personal consumption expenditures climbed by $87.8 billion, showing a monthly gain of 0.4%. This included a $56.3 billion rise in spending on goods and a $31.5 billion increase in spending on services.

Personal outlays rose by $118.4 billion. These outlays include consumer spending, interest payments, and government transfer payments. By the end of February, personal savings stood at $1.02 trillion. The personal saving rate was 4.6%. This rate measures how much of disposable income is saved rather than spent.

The increase in income was mainly driven by higher government transfer payments and stronger compensation. These figures suggest that households remain financially active, helping to support the broader economy.

Source: US Bureau of Economic Analysis

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