Consumer spending rises more than expected
Consumer spending rose more than expected in September, by 0.5%, according to the Commerce Department.
Spending increased as Americans spent more on durable goods — things built to last for long ranging from washing machines to chainsaws.
Personal income increased by 0.3%, less than expected, and amid a rise in employee compensation and nonfarm business earnings.
Economists had forecast that personal income and spending both rose 0.4% last month, according to Bloomberg.
The personal saving rate inched lower to 5.7% from 5.8% in the prior month.
We also got a reading on inflation via personal consumption expenditures (PCE). Core personal consumption expenditures, which measures prices paid for things and services except food and gas, rose 1.7%, in line with the consensus forecast.
The leaves the Federal Reserve's preferred measure of inflation below the 2% target.
The advance estimate of third-quarter gross domestic product (GDP) released Friday showed that consumer spending remained the key driver of economic growth, even though it slowed a bit from the second quarter.
- Anthony Bourdain explains why even after touring 80 countries, his favorite destination will always be Japan
- Scientists have discovered why American honey bees are turning into zombies
- Apple is stalling for time with its new Macbooks and Microsoft knows it
SEE ALSO: A bubble might be brewing in bourbon