Briefing.com: Personal Income and Spending

Updated: 27-Nov-24 10:28 ET

October Personal Income and Spending

Updated: 27-Nov-24 10:28 ET

Highlights

Personal income increased 0.6% month-over-month in October (Briefing.com consensus 0.3%) following an unrevised 0.3% increase in September.
Personal spending increased 0.4% (Briefing.com consensus 0.2%) following an upwardly revised 0.6% increase (from 0.5%) in September.
The PCE Price Index was up 0.2%, as expected, and up 2.3% year-over-year versus 2.1% in September.
The core PCE Price Index, which excludes food and energy, was up 0.3%, as expected, and up 2.8% year-over-year versus 2.7% in September.

Key Factors

The PCE Price Index for Goods was down 0.1% for the third straight month, leaving it down 1.0% year-over-year versus down 1.2% in September.
The PCE Price Index for Services was up 0.4%, versus up 0.3% in September, leaving it up 3.9% year-over-year versus 3.7% in September.
The personal savings rate as a percentage of disposable personal income increased to 4.4% from 4.1%.
Wages and salaries increased 0.5% month-over-month following a 0.4% increase in September.
Rental income increased 0.4% month-over-month after increasing 0.4% in September.
Personal interest income jumped 0.6% month-over-month after sliding 0.5% in September. Personal dividend income was up 1.3% month-over-month after increasing 0.4% in September.
Real disposable income was up 0.4% month-over-month and was up 2.7% year-over-year. Real personal spending was up 0.1% month-over-month and was up 3.0% year-over-year.

Big Picture

The key takeaway from the report is the absence of disinflation in the PCE price indexes on a year-over-year basis. That wasn't necessarily a surprise given that the monthly readings were in-line with estimates, yet it will keep the Fed inclined to take a more gradual approach to cutting the target range for the fed funds rate.