U.S. consumer spending up 0.3 percent in October

The Commerce Department reported on Wednesday that consumer spending in the U.S. rose 0.3 percent m-o-m in October, following an unrevised 0.2 percent m-o-m gain in September. Economists had forecast the reading to show a 0.3 percent m-o-m growth.

Meanwhile, consumer income was flat m-o-m in October, following an unrevised 0.3 percent m-o-m gain in the previous month. Economists had forecast a 0.3 percent m-o-m advance.

The October increase in personal income primarily reflected an advance in wages and salaries, which, however, was partially offset by decreases in personal interest income and in farm proprietors’ income.

The personal consumption expenditures (PCE) price index, excluding the volatile categories of food and energy, which is the Fed's preferred inflation measure, edged up 0.1 percent m-o-m in October after a flat m-o-m performance in the prior month. Economists had projected the index would rise 0.1 percent m-o-m.

In the 12 months through October, the core PCE increased 1.6 percent, following an unrevised 1.7 percent growth in the 12 months through September. Economists had forecast a gain of 1.7 percent y-o-y.