US Incomes, Spending Accelerated In September As Fed's Favorite Inflation Signal Slowed

After August's slowdown in annual growth for spending and income, analysts forecast a modest rebound in September but the data disappointed with personal income up 0.3% MoM (in line with expectations) but spending rose just 0.2% MoM (below the +0.3% MoM expected).

Source: Bloomberg

On a Year-over-year basis, both incomes and spending growth accelerated...

Source: Bloomberg

The divergence between spending and income has sent the savings rate up to 6-month highs...

Source: Bloomberg

And one of The Fed's most-watched inflation signals - core PCE deflator - slowed YoY, as real personal spending began to re-accelerate...

Source: Bloomberg

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