Americans' personal income and spending rose

In the US, personal income increased by 0.9 percent per month and personal consumption expenditures by 1.4 percent in September, surpassing expectations.

Americans' personal income and spending rose

The US Department of Commerce announced personal income and consumption expenditure data for September. Accordingly, personal incomes in the country increased by 0.9 percent in September compared to the previous month.

The market expectation for the data, which decreased by 2.5 percent in August, was to increase by 0.4 percent in September.

US PERSONAL CONSUMPTION EXPENDITURES INCREASED 1.4 PERCENT PER MONTH IN SEPTEMBER

Personal consumption expenditures, which have maintained their increasing trend since May with the effect of economic normalization, but slowed down in recent months, were expected to increase by 1 percent in September. Personal consumption expenditures increased by 1 percent in August.

Personal consumption expenditures price index increased by 0.2 percent monthly and 1.4 percent annually in September.

The core personal consumption expenditures price index, which the US Federal Reserve (Fed) considers as an indicator of inflation, also rose by 0.2 percent monthly and 1.5 percent annually in September.

The monthly change in the core personal consumption expenditures price index, where food and energy items are excluded from the calculation, followed a course in line with market expectations, while the annual change remained below expectations. The core personal consumption expenditures price index was expected to increase by 1.7 percent annually in this period.

Analysts warn that the increase in Kovid-19 cases across the country may further slow spending in the fourth quarter of the year, stating that aid programs for the new type of coronavirus (Kovid-19) outbreak have decreased and economic recovery payments have slowed.