U.S. personal income grew by 0.6% mom in October, exceeding market expectations of a 0.3% mom rise, with a total increase of USD 147.4B. Personal spending also climbed, rising 0.4% mom or USD 72.3B, aligning with forecasts. The robust income growth outpacing spending suggests an improved capacity for household savings or future consumption, adding resilience to the economy.
Inflation metrics, reflected in the PCE price indices, showed modest increases. Headline PCE price index rose 0.2% mom, while the core PCE price index, which excludes food and energy, rose 0.3% mom, both in line with expectations. Year-over-year, the headline PCE rose to 2.3% from 2.1%, and the core PCE increased to 2.8% from 2.7%, also meeting expectations.
Goods prices fell by -1.0% yoy, while services prices rose by 3.9% yoy, highlighting inflationary pressures concentrated in the services sector. Food prices saw a slight increase of 1.0% yoy, while energy prices dropped by -5.9% yoy, easing some cost pressures for consumers.
