The Commerce
Department reported on Thursday that consumer spending in the U.S. climbed 0.5
per cent m-o-m in September, following an unrevised 0.2 per cent
m-o-m gain in August.
Economists
had foreseen a surge of 0.4 per cent m-o-m for September.
Consumer income jumped 0.3 per cent m-o-m in September, after
an unrevised 0.2 per cent m-o-m advance
in the previous
month. Economists had predicted a 0.3
per cent m-o-m rise.
The September increase
in personal income was mainly due to gains in compensation and personal current
transfer receipts, which were partly offset by declines in personal interest
income and proprietors’ income.
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 September, following an
unrevised 0.1 per cent m-o-m uptick in August. This marked the strongest monthly increase in the core PCE
price in five months. Economists had anticipated
the indicator would grow 0.3 per cent m-o-m.
In the 12
months through September, the core PCE price index soared 2.7 per cent, the same pace as
in the 12 months through August. Economists had forecast a gain of 2.6 per cent
y-o-y.