The other big number in the report that many look at is the PCE price index, which was also up 0.4%. But much of that was the rise in gasoline in August that was not repeated in September, and the "core" inflation number (outside of food and gasoline) was only up 0.1%. To be fair, consumer spending outside of gasoline was basically flat, so a bit of a warning of a slowdown, especially if it repeats in September. But more interesting to me was that the spending and income numbers were also updated for several years before, and corresponding with the updates in GDP that we saw early in the week. Those updated numbers show that even as inflation has waned in the last year, the amount of income growth has gone up, and 2023's growth is even better than originally reported.
August personal income (blue) +0.4% m/m vs. +0.4% est. & +0.2% in prior month … personal spending (orange) +0.4% vs. +0.5% est. & +0.9% in prior month pic.twitter.com/11R9piTowu— Liz Ann Sonders (@LizAnnSonders) September 29, 2023
Saturday, September 30, 2023
Incomes, spending solid in US, and 2023's figures look better, with inflation ghost fading
On Friday, we got the always-important information on income and spending for August. And the numbers seemed OK in the US on that front.
Posted by Jake formerly of the LP at 11:18:00 AM