US consumer spending growth slows

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US consumer spending rose in February, but at a much slower rate than in January, official figures show.

The Commerce Department said that consumer spending edged up 0.2%, compared with a 1% jump in January.

February marked the second month to see an increase in spending, but followed six months of declines.

Analysts said the data could be a sign that the economy is on the mend, but questioned whether the spending could be sustained.

"I would not say we have seen a bottom, the economy is probably not declining as quickly as it was," said David Sloan, an economist at 4Cast.

The US economy shrank at an annualised rate of 6.3% in the final three months of 2008, the steepest decline since early 1982.

However, recent upbeat data on the housing market and factory orders has triggered hopes that the worst might be over.

The Commerce Department added that incomes fell in February by 0.2%.

Consumer spending forms the backbone of the US economy, accounting for 70% of activity.