The U.S. Department of Commerce released the September numbers for personal income and outlays. Personal income has been growing, but spending fell slightly on volatile auto sales and lower gas prices. It was recorded at 0.3% in September, against a Bloomberg estimate of 0.3% and following a 0.3% increase in August.
Friday’s report shows continued moderate growth in income. Spending has been volatile on a monthly basis, and the September numbers are not as surprising.
The wages and salaries component increased 0.2%, following a 0.5% gain from August. Averaging the wage gains leaves consumer basic income moderately healthy.
Personal spending fell 0.2%, following the 0.5% increase in August. The durable component dropped 2.0%, after a 2.1% gain in August, reflecting swings in auto sales. Ultimately lower gas prices would pull down nondurables.
Nondurable spending fell another 0.3%, after a 0.4% fall in August. Services read at 0.2%, after a 0.5% spike in August.
Personal consumption expenditures (PCE) inflation stayed soft, and the September number matched the estimate of a 0.1% increase after a dip of 0.1% in August. Core PCE inflation met expectations at 0.1% in September and posted the same number in August.
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