U.S. Personal Incomes Up, Personal Savings Decline
Americans kept on spending in September as income gains cooled, pushing down the savings rate to the lowest this year. Inflation matched the Federal Reserve’s target, reinforcing the central bank’s outlook for gradual interest-rate hikes.
Purchases, which account for about 70% of the economy, rose 0.4% from the prior month, matching economists’ estimates, following an upwardly revised 0.5% increase, Commerce Department figures showed Monday.
Incomes advanced a less-than-projected 0.2%, the weakest in more than a year, while Americans saved 6.2% of their disposable income, matching the lowest level since 2013.
The Fed’s preferred inflation gauge -- tied to consumption -- rose 0.1% from the previous month, matching projections, and was up 2% from a year earlier. Excluding food and energy, so-called core prices 0.2%, slightly above the median estimate for a 0.1% rise, and were also up 2% on an annual basis.