US Personal Spending Rises Less Than Expected in October

Personal consumption expenditures in the United States increased by 0.3 percent month-over-month in October 2016, easing from an upwardly revised 0.7 percent growth in September and below market expectations of 0.5 percent gain. Consumption of goods rose by 1.3 percent while spending on services fell by 0.2 percent.
BEA | Joana Ferreira | joana.ferreira@tradingeconomics.com 11/30/2016 1:55:16 PM
Spending rose at a faster pace for goods (+1.3 percent from +1.2 percent in September), boosted by nondurable goods (+1.4 percent from +0.7 percent) while consumption of durable goods slowed (+1 percent from +2.1 percent). Spending on services fell by 0.2 percent, after growing by 0.5 percent the previous month. 

Personal income went up 0.6 percent, compared to a 0.4 percent gain in September and market expectations of a 0.4 percent increase. It primarily reflected increases in compensation of employees (+0.5 percent from +0.4 percent in September) and personal interest income (+1.8 percent from +0.2 percent). Real DPI increased by 0.4 percent, following a 0.2 percent rise in the previous month.

The PCE price index increased 0.2 percent from September, the same as in the previous month. Excluding food and energy, the PCE price index edged up 0.1 percent, the same as in September.

US Personal Spending Rises Less Than Expected in October