US Personal Spending Matches Forecasts


Personal spending in the United States rose 0.4 percent from a month earlier in September of 2018, following an upwardly revised 0.5 percent rise in August. Figures matched market expectations, mainly boosted by spending in motor vehicles and health care.

Personal consumption expenditures (PCE) increased $53.0 billion (0.4 percent) in September: services rose 0.3 percent (0.5 percent in August), durables went up 1.4 percent (0.6 percent) and nondurables 0.3 percent (0.2 percent). 

The $33.2 billion increase in real PCE (0.3 percent) reflected an increase of $33.5 billion in spending for goods and a $3.5 billion increase in spending for services. Within goods, motor vehicles and parts was the leading contributor to the increase, with strong contribution from recreational goods and vehicles. Within services, the largest contributor to the increase was spending for health care that was more than offset by a decrease in spending for food services and accommodations. 

Personal income increased $35.7 billion (0.2 percent) in September, below an upwardly revised 0.4 percent gain in August and market expectations of 0.3 percent. It is the smallest gain in personal income since June of 2017. It primarily reflected increases in wages and salaries, government social benefits to persons, and rental income of persons that were partially offset by a decrease in proprietors’ income. 

Personal outlays increased $57.9 billion and personal saving was $975.7 billion in September, and the personal saving rate, personal saving as a percentage of disposable personal income, was 6.2 percent. Disposable personal income (DPI) increased $29.1 billion (0.2 percent). Real DPI increased 0.1 percent.

The PCE price index increased 0.1 percent, the same as in August and in line with forecasts. Excluding food and energy, the PCE price index increased 0.2 percent, following a flat reading in the previous month and above forecasts of 0.1 percent. Year-on-year, the PCE price index went up 2 percent (2.2 percent in August) and the core one increased 2 percent, the same as in August.

US Personal Spending Matches Forecasts


BEA | Joana Taborda | joana.taborda@tradingeconomics.com
10/29/2018 12:49:34 PM