Oct. Personal Income Rises 0.4%; Spending Up 0.1%

WASHINGTON – October personal income posted a 0.4% increase and personal consumption expenditures a slower 0.1% rise.

PCE core prices were flat for a 1.3% gain over the year, still subdued.

Private wages advanced $43 billion after just a 1.5 billion rise in September. Proprietors' income, rents, income receipts, and transfers were all higher. Revisions based on actual Q2 wage data also lifted September wages a little.

But saving jumped to its highest since December, putting the saving rate at 5.6%. This means spending was a little weak.

Chained consumption posted just a 0.1% rise, mainly because services spending was flat. This is a slow start to Q4. But rising income means spending should pick up over the holiday season.

Market News International is a real-time global news service for fixed-income and foreign exchange market professionals. See www.marketnews.com.

Market News International is a real-time global news service for fixed-income and foreign exchange market professionals. See www.marketnews.com.
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