US personal income falls, spending rises in September

By Ovunc Kutlu

ANKARA (AA) - Personal income in the US declined in September much larger than market estimate, but personal spending showed an increase to slightly beat the expectations, according to data released by the Bureau of Economic Analysis on Friday.

In September, personal income decreased $216.2 billion, or 1%, from the previous month. Market expectation for personal income was a decline of 0.2% in September, after it increased 0.2% in August.

Personal spending, on the other hand, rose $93.4 billion, or 0.6%, in September from the month before. Market estimate for personal spending was an increase of 0.5% in September, while it jumped 1% in the previous month.

The personal consumption expenditures (PCE) price index, the Federal Reserve’s preferred inflation indicator, increased 0.3% in September. Core PCE index, excluding food and energy, rose 0.2% from the previous month. Year-on-year, they were up 4.4% and 3.6%, respectively.

The Fed signaled at the conclusion of its last meeting on Sept. 22 that its first interest rate increase could come at the end of 2022.

The consumer price index (CPI) in September rose 0.4% from the previous month and 5.4% from the same period last year, while the producer price index (PPI) increased 0.5% on a monthly basis and 8.6% annually, according to the latest figures of the Labor Department.