01:59 PM EST, 02/28/2025 (MT Newswires) -- Personal income was up 0.9% in January, well above expectations, lifted by a 0.4% gain in wage and salaries and large gains for proprietors' income, rental income, return on assets and transfer receipts.

Personal consumption expenditures fell by 0.2% in January after a 0.8% increase in December, with a large decline in goods PCE, partially offset by an increase in services PCE.

After an adjustment for a 0.3% increase in the PCE price index, real consumption was down 0.5% in January after a 0.5% increase in December. The year-over-year rate for the overall price index slowed to 2.5% from 2.6%

Core PCE prices rose by 0.3% sequentially, while the year-over-year rate moderated to 2.6% from 2.9%.

The advance goods trade deficit widened to $153.26 billion in January from $122.01 billion in December, reflecting a large surge in imports that was partially offset by a gain in exports.

Advance wholesale inventories rose by 0.7%, while advance retail inventories decreased by 0.1%. Wholesale inventories will be updated on March 6, while retail inventories are eligible for revision on March 17.

The Chicago PMI rose to 45.5 in February from 40.5 in January, the last regional manufacturing reading for the month. The Institute for Supply Management's national index is due to be released on March 3.

The Kansas City Federal Reserve's services index rose to 2 in February from minus 4 in January. Other regional services data already released have been mixed.

The St. Louis Fed's GDP nowcast estimate for Q1 is for a 1.49% gain, revised down from a 1.77% gain reported in the previous week.

The Q1 GDPnow estimate from the Atlanta Fed is for a 1.5% decline, revised down from a 2.3% gain reported on Feb. 19. The next update is scheduled for March 3.