U.S. PERSONAL INCOME ROSE 0.9 PCT IN FEBRUARY
U.S. personal income rose 0.9 pct,
or 32.4 billion dlrs, in February to a seasonally adjusted
annual rate of 3,581.3 billion dlrs, the Commerce Department
said.
    The increase followed a revised 0.2 pct rise in personal
income during January. Earlier, the department estimated
January personal income was unchanged.
    The February incomes rise was the largest monthly increase
since a 1.2 pct rise in April 1986, the department said. It
attributed last month's rise to several factors, including
subsidy payments to farmers and government pay raises.
    The department said personal consumption expenditures were
up during February by 1.7 pct or 49.1 billion dlrs to 2,855.9
billion dlrs after falling by 58.4 billion dlrs or two pct in
January.
    Purchases of durable goods were up 24.8 billion dlrs last
month after decreasing by 69.7 billion dlrs in January with
sales of motor vehicles accounting for most of the February
increase and the January decline, the department said.
    Purchases of nondurables rose 10.7 billion dlrs in February
after a 300 mln dlr increase in January.
    The Commerce Department said wage and salary incomes were
up 15.6 billion dlrs in February after an 8.6 billion dlr rise
in January.
    Manufacturing payrolls increased by 2.4 billion dlrs last
month after rising 1.9 billion dlrs in February with the gains
widespread through durable and nondurable industries, the
department said.
    Farmers' incomes increased by 12.2 billion dlrs in February
after declining by 8.7 billion dlrs in January. Both last
month's increase and January's fall in farm incomes was because
of government subsidy payments, the department said.
    Personal tax and nontax payments fell 5.5 billion dlrs in
February following a 19.5 billion dlrs January drop. The 
declines were a result of the Tax Reform Act of 1986.
    Federal withheld income taxes were up in February from a
month earlier but that was offset by declines in federal
nonwithheld taxes and lower state and local income taxes.
    Disposable personal income in February after taxes was up
1.2 pct or 37.8 billion dlrs to 3,063.4 billion dlrs after
rising 25.8 billion dlrs in January.
    The personal savings rate eased to 3.6 pct in February from
four pct in January, the department said.
 Reuter
