US personal spending rises more than expected in August

By FXStreet FXStreet (Mumbai) – Personal spending in the US rose more than expected in August, while growth in income cooled somewhat, although the overall report showed consumption; which is the biggest part of the economy; is on the recovery.

Personal income in August rose 0.3%, missing the estimated figure of 0.4%, while personal spending rose 0.4% in August, beating expectation of a 0.3% rise. The upbeat data comes after the upward revision of the US Q2 GDP and consumption number on Friday.

The report showed the price index tied to consumer spending (Fed’s preferred gauge of inflation) was unchanged in August. From a year earlier, the gauge was up 0.3%. The core figure rose 0.1% from the month before and 1.3% in the 12 months ended August.

Overall the report is slightly upbeat, given the uptick in the personal spending. The saving rate of 4.6% is slightly lower than earlier in the year.
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Source:: FX Street