01:26 PM EDT, 03/28/2025 (MT Newswires) -- Personal income was up 0.8% in February, ahead of expectations, lifted by a 0.4% gain in wage and salaries.

Transfer payments continued to rise sharply, supplemented by gains in the other income categories.

Personal consumption expenditures rose by 0.4% in February after a 0.3% decrease in January, lifted by gains in both goods and services spending.

After an adjustment for a 0.3% increase in the PCE price index, real consumption was up 0.1% in February after a 0.6% decrease in January. The year-over-year rate for the overall price index remained at 2.5%.

Core PCE prices rose by 0.4% in the month, after a 0.3% gain in the previous month, while the year-over-year rate accelerated to 2.8% from 2.7%.

The University of Michigan consumer sentiment index for March was revised lower to 57.0 from the preliminary estimate of 57.9 and was below February's reading of 64.7, with a downward adjustment to consumer expectations the key factor.

Michigan said that inflation expectations remained elevated, with the one-year inflation outlook the highest since November 2022.

The Kansas City Federal Reserve's services index fell to 0 in March from 2 in February. Other regional services data already released have indicated contraction for the sector, but the S&P Global flash estimate pointed to faster expansion.

State-level from the Bureau of Labor Statistics showed that the unemployment rate rose in one state in February, Florida, and held steady elsewhere. South Dakota had the lowest jobless rate in February, while Nevada had the highest.

The Q1 GDPnow estimate from the Atlanta Fed is for a 2.8% decline, revised down from a 1.8% drop reported on Wednesday. The next update is scheduled for April 1.

The St. Louis Fed's GDP nowcast estimate for Q1 is for a 2.13% gain, revised down from a 2.25% gain reported in the previous week.