Personal income and spending rose a little less than expected in September.
Both personal income and spending rose 0.1%.
“Core” personal consumption expenditures (PCE), a measure of inflation, rose 0.1% month-on-month, and increased 1.3% compared to the prior year. The headline was depressed by low gas prices.
Economists had estimated that personal income and spending each rose 0.2% in month-on-month.
They had forecast that “core” personal consumption expenditures increased 0.2% month-on-month, and 1.4% year-on-year.
“The chart shows that the rates of growth of real spending on both goods and services have levelled off, after accelerating markedly last year, but at healthy 4% and 3% respectively,” wrote Pantheon Macroeconomics’ Ian Shepherdson.
- Pantheon Macroeconomics