The Commerce
Department announced on Wednesday that consumer spending in the U.S. increased
0.4 per cent m-o-m in October, following an upwardly revised 0.6 per cent m-o-m climb (from +0.5
per cent m-o-m) in September. Economists had predicted a gain of 0.3 per cent
m-o-m for October.
Consumer income surged 0.6 per cent m-o-m in October, after
an unrevised 0.3 per cent m-o-m jump
in the previous
month. This
represented the strongest monthly increase in consumer income since March (+0.6 per cent m-o-m). Economists had expected a 0.3 per cent m-o-m advance.
The October increase
in personal income was mainly due to gains in compensation, personal income
receipts on assets, and personal current transfer receipts.
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, went up 0.3 per cent m-o-m in October, following an
unrevised 0.3 per cent m-o-m increase
in September. Economists had foreseen the indicator would move up 0.3 per cent m-o-m.
In the 12
months through October, the core PCE price index climbed 2.8 per cent, the same pace as
in the 12 months through September. This was the
highest reading since April (+2.9 per cent). Economists had forecast a soar of 2.8 per cent
y-o-y.