Consumers keep on spending in October, aided by rising incomes and low inflation

• November 30, 2017
• realestatelife
• Announcements, Business & Markets, Real Estate, Real Estate Finance

Consumer spending rose a steady 0.3% in October following a nearly 1% gain in the prior month that was the largest in eight years. Economists polled had forecast a 0.2% increase.

Personal income rose 0.4% for the second month in a row. The savings rate, meanwhile, edged up to 3.2% from 3%. Savings had fallen to a 10-year low in September.

The PCE index, the Federal Reserve’s preferred inflation gauge, rose a scant 0.1% in October. The closely followed “core” rate that strips out food and energy advanced 0.2%.

The rate of inflation over the past year fell slightly to 1.6%. The core rate was flat at 1.4%.