US shoppers during the Black Friday shopping day US consumer spending picked up pace in October, despite a dip in income, the Commerce Department reported on Friday. Consumer spending rose 0.3 percent in October, matching the average estimate, accelerating slightly from a 0.2 percent in increase in September.
Personal income fell 0.1 percent instead of the 0.3 percent rise expected by most analysts. Incomes had climbed 0.5 percent in September and August.
The October 1-16 partial government shutdown had no impact on government wages and salaries because Congress authorized back pay for federal workers furloughed during the shutdown, the department said.
But it said it could not separately identify in the data gathered any impacts of the shutdown on private wages or on consumer spending.
The uptick in consumer spending, which accounts for about two-thirds of US economic activity, came as Americans cut back on saving at the start of the fourth quarter. The rate of savings to disposable personal income dropped to 4.8 percent from 5.2 percent in September.
Inflation eased in October. The price index for personal consumption expenditures was essentially flat, falling less than 0.1 percent after a slight 0.1 percent increase in September.
The core PCE price, excluding food and energy, rose 0.1 percent, the same increase as in the prior month.
Source: AFP