Business Highlights

Consumer spending up, but income sags on job cuts

WASHINGTON (AP) — After a half year of declines, consumer spending edged up for a second month in February even though incomes sagged under the weight of further job losses. The spending increases were seen as a hopeful sign that this key sector of the economy is staging a modest rebound that could help pull the country out of the recession.

Consumer spending rose by 0.2 percent last month after an even bigger 1 percent jump in January, which was the largest one-month gain in 3½ years, the Commerce Department reported Friday. Those gains followed a record six straight monthly declines as consumers tightened their belts in the face of a deepening recession.

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AP Source: Government may seek more auto givebacks

DETROIT (AP) — The Obama administration is likely to impose deeper concessions on Chrysler LLC and General Motors Corp. in exchange for additional federal loans, a person briefed on the government's plan said Friday.