The
Commerce Department reported on Friday that consumer spending in the U.S. rose
0.6 percent m-o-m in September after a revised 1.0 percent m-o-m jump in August
(originally a 0.8 percent climb m-o-m). Economists had
forecast the reading to show a 0.5 percent m-o-m increase.
Meanwhile,
consumer income fell 1.0 percent m-o-m in September, following an unrevised 0.2
percent m-o-m gain in the previous month. This marked the first monthly decrease in consumer
income since May. Economists had forecast a 0.2 percent m-o-m drop.
The
September decline in personal income primarily reflected a fall in government
social benefits, both in unemployment benefits and “other” benefits.
The
personal consumption expenditures (PCE) price index, excluding the volatile
categories of food and energy, which is the Fed's preferred inflation measure, increased
0.2 percent m-o-m in September, following an unrevised 0.3 percent m-o-m advance
in August.
Economists had projected the index would rise 0.2 percent m-o-m.
In the 12 months through September, the core PCE
jumped 3.6 percent, the same pace as in the previous three months. Economists had forecast an increase of
3.7 percent y-o-y.