Consumer spending advanced at a healthy rate in February, but Americans' income rose at the slowest pace in nine months, the government said yesterday.
The Commerce Department said personal income rose only 0.3 percent last month, just half the 0.6 percent increase of January.
Although it was the smallest monthly gain since a 0.3 percent May increase, analysts said some of the weakness stemmed from bad weather, which forced plant shutdowns during the month.
Consumer spending advanced a much healthier 0.7 percent following strong gains of 0.8 percent in both January and December.
Analysts said the eagerness of consumers to continue spending should provide strong economic growth in coming months. add f 2-Year Treasury Notes Yield 10.86% Yields on the Treasury's $9.02 billion of two-year notes sold at yesterday's auction averaged 10.86 percent -- the highest since 11.73 percent on Oct. 31. The yield was up from 10.12 percent at the previous two-year note auction Feb. 20.
Yields on accepted bids ranged from 10.83 percent to 10.88 percent, and 6 percent of the bids at the highest return, or stopout rate, were accepted. The Treasury received bids totaling $22.02 billion and accepted $9.02 billion, including $1.33 billion of noncompetitive tenders at the average yield.