News Summary: US spending and income up

News Summary: US consumer spending and income both up in February, boosting growth forecasts

Associated Press

CONSUMER SPENDING: Consumers increased spending 0.7 percent in February compared with January. It was the biggest gain in five months. The government also revised January spending to show a 0.4 percent gain, double the initial estimate.

INCOME GROWTH: Personal income rose a solid 1.1 percent in February following huge swings in the previous two months.

OUTLOOK: The strong spending gains prompted some economists to boost their outlook for overall economic growth in the January-March quarter. Some think the economy grew at a 3 percent annual rate during the quarter, up significantly from 0.4 percent rate in the October-December quarter.

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