A report released by the Commerce Department on Monday showed personal income in the U.S. rose by slightly less than expected in the month of September, although the report also showed personal spending increased in line with estimates.
The report said personal income edged up by 0.2 percent in September after climbing by an upwardly revised 0.4 percent in August.
Economists had expected income to rise by 0.3 percent, matching the increase originally reported for the previous month.
Disposable personal income, or personal income less personal current taxes, also ticked up by 0.2 percent in September after advancing by 0.4 percent in August.
Meanwhile, the Commerce Department said personal spending rose by 0.4 percent in September after increasing by an upwardly revised 0.5 percent in August.
Spending had been expected to advance by 0.4 percent following the 0.3 percent increase originally reported for the previous month.
Real spending, which is adjusted to remove price changes, rose by 0.3 percent in September after climbing by 0.4 percent in August.
“The rise in real spending in September was mainly driven by a 1.8% m/m surge in spending on durable goods, which mostly reflects the spike in motor vehicle sales following Hurricane Florence,” said Andrew Hunter, U.S. Economist at Capital Economics.
He added, “That boost will fade over the coming months, however, and there were signs that underlying spending is already starting to slow, with real spending on services unchanged last month.”
With spending rising by more than income, personal saving as a percentage of disposable income dropped to 6.2 percent in September from 6.4 percent in August.
The report also said a reading on inflation said to be preferred by the Federal Reserve showed the annual rate of core consumer price growth held at 2.0 percent for the fifth straight month.