Consumer spending rises more than expected

Consumer spending rose more than expected in September, by 0.5%, according to the Commerce Department.

Spending increased as Americans spent more on durable goods — things built to last for long ranging from washing machines to chainsaws.

Personal income increased by 0.3%, less than expected, and amid a rise in employee compensation and nonfarm business earnings.

Economists had forecast that personal income and spending both rose 0.4% last month, according to Bloomberg.

The personal saving rate inched lower to 5.7% from 5.8% in the prior month.

We also got a reading on inflation via personal consumption expenditures (PCE). Core personal consumption expenditures, which measures prices paid for things and services except food and gas, rose 1.7%, in line with the consensus forecast.

The leaves the Federal Reserve’s preferred measure of inflation below the 2% target.

The advance estimate of third-quarter gross domestic product (GDP) released Friday showed that consumer spending remained the key driver of economic growth, even though it slowed a bit from the second quarter.

NOW WATCH: LIZ ANN SONDERS: The most unsettling outcome for the markets would be a surprise Trump win

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.