Personal spending fell by 0.2% in September, and personal income climbed by 0.2% in September, according to the latest personal income and outlays report from the BEA.
Expectations were for personal income to rise by 0.3%, and for personal spending to rise by 0.1%.
PCE Core rose by 0.1% month-over-month and 1.5% year-over-year, which were in in line with expectations.
The report showed that private wages and salaries increased by $US12.6 billion in September, less than the $US30.4 billion increase in private wages and salaries in August. Supplements to wages and salaries increased by $US3.5 billion in September, which was less than August’s increase of $US4.7 billion.
In a note to clients following Friday’s report, Ian Shepherdson at Pantheon Marco said, “…the next couple of months will see spending pick up strongly as people start to spend their windfall from falling gas prices.”
Last month, personal spending rose by 0.5% and personal income rose by 0.3%.