US personal income and spending beat forecasts but price gains slow slightly

Personal incomes and spending in the US grew more quickly than expected last month but price pressures were a touch lower than anticipated.

According to the US Department of Labor, personal incomes increased at a month-on-month pace of 0.4% (consensus: 0.3%).

Furthermore, the variations for the prior two months were revised higher by a tenth of a percentage point each.

Personal consumption expenditures meanwhile jumped by 0.6% (consensus: 0.4%) and August's rise was marked up by two tenths of a percentage point to show a gain of 0.6%.

The headline PCE price deflator on the other hand increased by 0.3% on the month, as expected, and 6.2% on the year (consensus: 6.3%).

Excluding food and energy, PCE prices were up by 0.5% on the month, also as expected, and 5.2% higher in annual terms (consensus: 5.3%).

As a percentage of disposable personal income, the personal savings rate ticked lower by a tenth of a percentage point to 3.3%.

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