Personal income increased 0.7% month-over-month in October (Briefing.com consensus 0.4%) following a 0.3% increase in September. Personal spending jumped 0.8% (Briefing.com consensus 0.8%) following a 0.6% increase in September.
The PCE Price Index was up 0.3% month-over-month (Briefing.com consensus 0.4%) and the core-PCE Price Index, which excludes food and energy, increased 0.2% (Briefing.com consensus 0.2%). On a year-over-year basis, the PCE Price Index was up 6.0%, versus 6.3% in September, and the core-PCE Price Index was up 5.0%, versus 5.2% in September.
The key takeaway from the report was the improvement in the inflation readings, particularly the core-PCE Price Index given Fed Chair Powell's emphasis that the Fed's policy tools are better designed for working on core inflation.
Real personal spending was up 0.5% month-over-month and up 1.8% year-over-year (versus up 2.0% in September). Real disposable personal income was up 0.4% month-over-month and down 3.0% year-over-year (versus down 3.4% in September).
Wages and salaries were up 0.5% month-over-month following a 0.6% increase in September.
Proprietors' income was flat month-over-month following a 0.3% increase in September.
Rental income was up 0.3% month-over-month after increasing 0.3% in September.
Personal current transfer receipts increased 1.6% month-over-month after being unchanged in September.
The personal savings rate as a percentage of disposable income was 2.3%, down from 2.4% in September.
