US personal incomes and spending beat forecasts in October

Americans continued to spend freely last month, amid a slight pick up in price pressures.

According to the Department of Commerce, personal consumption expenditures grew at a month-on-month pace of 0.4% in October and personal incomes by 0.6%.

Economists had expected that both would rise by 0.3%.

The rate of PCE growth for the prior month was revised higher by one tenth of a percentage point to 0.6%.

The annual rate of increase in the headline PCE price deflator meanwhile rose from 2.1% for October to 2.3% in November, as expected.

Core PCE inflation sped up by one tenth of a percentage point to reach 2.8%, which was also as anticipated.

The personal savings rate improved from 4.1% to 4.4%.

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