Consumer Spending Climbs 0.2% In October

Consumer spending in the U.S. rose slightly in October while revised outlays in September were revised to show no change instead of a decline, indicating that households are spending a bit more than previously believed. Consumer spending climbed a seasonally adjusted 0.2% in October, as did personal income, the Commerce Department said Wednesday. Economists polled by MarketWatch had forecast a 0.3% increase in spending and a 0.4% gain in income. The amount of money individuals save was flat at 5%, but the saving rate was revised down sharply to 5% in September from a first read of 5.6%. The lower savings rate also shows consumers have been spending more than earlier government estimates indicated. Meanwhile, inflation as gauged by the PCE price index rose 0.1% last month, while the core rate excluding food and energy climbed 0.2%. Over the past 12 months the PCE index has risen a mild 1.4%, unchanged from the prior month. The core rate has increased 1.6% in the same span, up a notch from September.