ECON: Consumer Spending Lower Than Expected
- Spending -0.2 pct vs 0.0 consensus
- First decline in spending since May
- Income 0.0 vs +0.2 consensus, weakest since April
- "Real" Consumer Spending -0.3 pct, most since Sept 2009
Personal income increased $0.4 billion, or less than 0.1 percent, and disposable personal income
(DPI) increased $0.8 billion, or less than 0.1 percent, in October, according to the Bureau of Economic
Analysis. Personal consumption expenditures (PCE) decreased $20.2 billion, or 0.2 percent. In
September, personal income increased $47.8 billion, or 0.4 percent, DPI increased $42.1 billion, or 0.4
percent, and PCE increased $84.0 billion, or 0.8 percent, based on revised estimates.
Real disposable income decreased 0.1 percent in October, compared with an increase of less than 0.1
percent in September. Real PCE decreased 0.3 percent, in contrast to an increase of 0.4 percent.
Personal outlays -- PCE, personal interest payments, and personal current transfer payments -- decreased
$18.0 billion in October, in contrast to an increase of $87.3 billion in September. PCE decreased
$20.2 billion, in contrast to an increase of $84.0 billion.