The Commerce
Department announced on Friday that consumer spending in the U.S. rose 0.2 per
cent m-o-m in August, following
an unrevised 0.5 per cent m-o-m jump in July. This marked the weakest monthly increase in consumer spending since January (+0.1 per cent m-o-m). Economists had predicted an advance of 0.3 per
cent m-o-m for August.
Consumer income also moved up 0.2 per cent m-o-m in August,
after an unrevised 0.3 per cent m-o-m
increase in the
previous month. Economists had forecast
a 0.4 per cent m-o-m gain.
The August increase
in personal income mainly reflected a rise in compensation that was
partly offset by a decline in personal income receipts on assets.
Meanwhile, the
personal consumption expenditures (PCE) price index, excluding the volatile
categories of food and energy, which is the Federal Reserve's preferred
inflation gauge, inched up 0.1 per cent m-o-m in August, following an
unrevised 0.2 per cent m-o-m rise in July. This represented the softest monthly increase in the core PCE
price in three months. Economists had expected
the indicator would grow 0.2 per cent m-o-m.
In the 12
months through August, the core PCE price index climbed 2.7 per cent, slightly quickening from
an unrevised 2.6 per cent in the 12 months through July. This
was the highest reading since April (+2.8 per cent). Economists had foreseen a surge of 2.7 per
cent y-o-y.