Personal Spending Rises More Than Expected

Personal spending rose 0.5% in August, while personal income rose 0.3%, according to the latest personal income and outlays report from the BEA.

Expectations were for personal income to rise 0.3% and personal spending to rise 0.4% month-over-month.

“Core” PCE, which excludes the cost of food and energy and is the Federal Reserve’s preferred measure of inflation, rose 0.1% month-over-month, better than expectations for “core” PCE to be flat.

On a year-over-year basis, “core” PCE rose 1.5%.

The report showed that private wages and salaries rose by $US30.4 billion in August, more than the $US17.4 billion increase in private wages and salaries in July, while supplements to wages and salaries rose $US4.7 billion August against a $US3.8 billion increase in July.

Last month, personal spending unexpectedly declined 0.1%.

More to come …

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