Photo: Kim Bhasin / Business Insider
Not good.Personal income was unchanged in October. Economists were looking for a 0.2 per cent gain.
Spending unexpectedly fell 0.2 per cent. Economists were expecting this to be unchanged.
Right away, people are blaming Hurricane Sandy.
Presumably, economists took Sanday into account. So, the explanation is that the impact of Sandy has been worse than expected.
In yesterday’s Q3 GDP report, personal consumption was revised down sharply. Hopefully, today’s disappointing spending report, which reflects the first month of Q4, isn’t the beginning of a trend in the U.S. consumer.
Meanwhile, U.S. futures are up a tad.
From the BEA report:
Personal income increased $0.4 billion, or less than 0.1 per cent, and disposable personal income (DPI) increased $0.8 billion, or less than 0.1 per cent, in October, according to the Bureau of Economic Analysis. Personal consumption expenditures (PCE) decreased $20.2 billion, or 0.2 per cent. In September, personal income increased $47.8 billion, or 0.4 per cent, DPI increased $42.1 billion, or 0.4 per cent, and PCE increased $84.0 billion, or 0.8 per cent, based on revised estimates.
Real disposable income decreased 0.1 per cent in October, compared with an increase of less than 0.1 per cent in September. Real PCE decreased 0.3 per cent, in contrast to an increase of 0.4 per cent.