Savings Rate Ticks Higher As Income Growth Hits 2 Year Highs

For the 22nd straight month, US spending growth outpaced income growth in October.

The last time income growth was higher than this was Dec 2015, but spending growth is stalling...

Mostly driven by Private workers wage growth...

However, month-over-month saw slightly better than expected income growth of 0.4% (while spending growth slowed drastically from a revised 0.9% surge in September to a 0.3% gain in October).

 

Which indicates a modest rise in the savings rate...

Probably chalk this one up to hawkish for The Fed.