Washington – (AFP)
US consumer spending rose slightly in October after stalling in September, while personal income growth remained marginal, the Commerce Department reported Wednesday.
Consumer spending, driving about two-thirds of US economic output, rose 0.2 percent, matching analysts’ consensus estimate.
In September, spending was flat, the department said, revising up its prior reading of a 0.2 percent decline.
Personal income increased 0.2 percent for the second consecutive month in October, the weakest rise since December 2013.
Growth in personal income was only half what analysts expected.
Wages and salaries, which account for the largest share of personal income, rose 0.3 percent in October after a 0.2 percent increase in September.
Inflation remained subdued and well below the Federal Reserve’s comfort zone of 2.0 percent.
The personal consumption expenditures (PCE) price index, the Fed’s preferred inflation measure, rose at an annual rate of 1.4 percent in October, the same increase as in the prior month.
Excluding volatile food and energy prices, core PCE prices inched up to a 1.6 percent annual rate, after holding at a 1.5 percent pace for the prior five months.
Month-over-month, PCE prices rose 0.1 percent for the second straight month in October, while core PCE prices climbed 0.2 percent, double the September rise.