Personal Income unexpectedly rose 0.4% in January, versus the estimate of -0.2%, and December was unrevised at -0.2%. Personal spending increased 0.6% in January, topping expectations of a 0.4% increase. The PCE Price Index which is released with the income and spending data, rose 0.7% in January, while December was revised higher. The core PCE Price Index, which excludes food and energy, increased 0.1%. Year-over-year, core prices are up 1.6%.
ISM Manufacturing Index rose to 35.8 from 35.6 in January, better than the economists’ expectation of 33.8. The separation point between contraction and expansion is a reading of 50. New orders fell to 33.1 from 33.2 in January and employment fell to 26.1 from 29.9 in January. Prices paid remained at 29.0.
Construction spending fell 3.3% in January, more than the forecast of a 1.5% decline, and December's drop was worse than initially reported. Year-over-year, total spending is down 9.1%.
