In September, US personal income rose by 0.3% mom, or USD 71.6B, slightly below the expected 0.4% mom increase. Meanwhile, personal spending grew by 0.5% mom or USD 105.8B, exceeding forecasts of a 0.4% mom rise.
PCE price index rose 0.2% mom, while core PCE price index, which excludes food and energy, increased by 0.3% mom, both aligning with expectations. Breaking down price components, goods prices decreased by -0.1% mom, and services prices increased by 0.3% mom. Food prices rose by 0.4% mom, while energy prices saw a significant -2.0% mom decline.
On a year-over-year basis, the headline PCE price index edged down from 2.2% yoy to 2.1% yoy, meeting forecasts. However, core PCE price index remained unchanged at 2.7% yoy, slightly above the anticipated 2.6% yoy. Goods prices dropped by -1.2% yoy, while services prices rose by 3.7% yoy. Food prices increased by 1.2% yoy, and energy prices saw a sharp decline of -8.1% yoy.
