Growth of US Consumer Spending Accelerated Last Month
US consumer spending, which accounts for more than two-thirds of US economic activity, accelerated in October. The Commerce Department reported, that consumer spending rose 0.6% in October, after a 0.2% gain in September. September’s reading was revised down from an initial advance of 0.4% Economists had forecast consumer spending rising 0.4% last month.
It was also reported, that personal income increased by 0.5% in October after advancing an unrevised 0.2% in September. Economists had expected a 0.4% advance.
Meanwhile, the Fed’s preferred inflation measure, the personal consumption expenditures (PCE) price index, excluding food and energy, gained 0.1% in October after an increase of 0.2% in the prior month. The so-called core PCE increased 1.8% yoy in October, compared to 1.9% a month earlier. Analysts had forecast a 0.2% and 1.9% growth, respectively.