US consumer spending rises at slowest pace since January

US consumer spending rose at the slowest pace since the turn of the year in September, data released on Friday showed.

According to figures released by the Commerce Department, spending rose 0.1% month-on-month in September compared with a 0.4% increase in August and with analysts’ expectations for a 0.2% gain.

Spending on durable goods and services rose 0.6% and 0.3% respectively, while purchases of non-durable goods such as gas declined 0.3%.

Meanwhile, personal income rose 0.1% month-on-month in September, the smallest gain since March and short of expectations of a 0.2% increase.

August’s reading was revised up to show a 0.4% increase.

In real terms, personal spending rose 0.2%, in line with consensus but slightly lower than the 0.4% gain recorded in August.

On a core level, which strips out food and energy, the personal consumption expenditure index rose 0.1% month-on-month, matching the gain registered in August but falling short of the 0.2% reading analysts had expected.

On a year-on-year basis, the PCE index rose 1.3%, slightly below the 1.4% consensus but in line with the 1.3% rise recorded in August.