U.S. personal income increased during January, but consumer spending recorded the largest climb in six months, keeping the rate of savings in negative territory.

The U.S. Commerce Department said today that personal spending rose by 0.9%, the strongest gain in six months.

Incomes advanced 0.7%, the best showing since September. Disposable personal income, or income after taxes, rose by 0.5%.

With spending continuing to outstrip gains in income, the savings rate remained in negative territory. Personal saving as a percentage of disposable income was negative 0.7% in January. The savings rate has been negative eight times in the last 10 months, and for all of 2005 the rate of saving was negative 0.4%, the first time U.S. savings has been negative for an entire year since 1932 and 1933.

Spending on durable goods, or those products designed to last three years or longer, rose by 1.3% in January, after a 3.9% increase in December. Non-durable goods spending rose by 2.3%, after a 0.2% increase in December. Spending on services rose 0.1%; outlays went up 0.4% in December.

A price index for personal consumption expenditures excluding food and energy rose 0.2% in January after rising 0.1% in December. In annual terms, the core increased 1.8% during January, lower than 1.9% increase in December. The Federal Reserve watches the core PCE price index closely for signs of excessive inflation. The central bank’s so-called comfort zone with the measure is considered to be between 1% and 2%.