Daily Management Review

Americans' income growth in September fail to meet forecasts


According to a report by the US Ministry of Commerce, the country's population's incomes rose by 0.3% in September over the previous month.

Americans' expenses went up by 0.7%.

According to Trading Economics, experts projected an increase in revenue of 0.4% and 0.5% in expenses, on average.

Americans' incomes and spending went up by 0.4% in August.

September saw a rise in the consumer price index (PCE index) of 3.4% over September of last year and 0.4% over the previous month. The average rise predicted by analysts was 3.4%, and a rise of 0.3%. The growth rate for September was consistent with that of August, both on a monthly and annual basis.

In monthly terms, the increase in the PCE Core index—which does not include food and energy costs—accelerated to 0.3% from 0.1% in August, but it dropped to 3.7% from 3.8% in annual terms last month. In both instances, the growth rate was in line with market expectations. The PCE Core index is one important metric that the Federal Reserve monitors for evaluating inflation concerns.

Consumer spending makes up over 70% of the total economy in the US.

source: tradingeconomics.com