The
Commerce Department reported on Wednesday that consumer spending in the U.S. jumped
1.3 percent m-o-m in October after an unrevised 0.6 percent m-o-m gain in September. This
marked the largest monthly rise in consumer spending since March. Economists
had forecast the reading to show a 1.0 percent m-o-m increase.
Meanwhile,
consumer income increased 0.5 percent m-o-m in October, following an unrevised 1.0
percent m-o-m drop in the previous month. This represented the biggest monthly gain in
consumer income since July. Economists had forecast a 0.2 percent m-o-m increase.
The
October rise in personal income was primarily due to gains in compensation of
employees and personal income receipts on assets, which, however, were partly
offset by a decline in government social benefits.
Elsewhere,
the personal consumption expenditures (PCE) price index, excluding the volatile
categories of food and energy, which is the Fed's preferred inflation measure, rose
0.4 percent m-o-m in October, following an unrevised 0.2 percent m-o-m advance in
September.
Economists had projected the index would increase 0.2 percent m-o-m. In the 12 months through October, the core PCE climbed
4.1 percent, accelerating from an upwardly revised 3.7 percent in the 12 months
through September (from 3.6 percent). Economists had forecast an increase of 4.1
percent y-o-y.