The Commerce
Department reported on Friday that consumer spending in the U.S. jumped 0.5 per
cent m-o-m in July after
an unrevised 0.3 per cent m-o-m rise in June. This was the strongest monthly increase
in consumer spending in four months. Economists had forecast a gain of 0.5 per cent m-o-m
for July.
Meanwhile,
consumer income increased 0.3 per cent m-o-m in August, following an unrevised 0.2 per cent m-o-m advance in the previous month. Economists had predicted a 0.2 per
cent m-o-m advance.
The July increase
in personal income was mainly due to a rise in compensation.
Elsewhere, the
personal consumption expenditures (PCE) price index, excluding the volatile
categories of food and energy, which is the Federal Reserve's preferred
inflation gauge, increased 0.2 per cent m-o-m in August, the same pace as in
June. Economists had anticipated the
indicator would move up 0.2 per cent m-o-m.
In the 12
months through July, the core PCE price index jumped 2.6 per cent, the same pace as
in the 12 months through June. Economists had foreseen an increase of
2.7 per cent y-o-y.