US consumer spending rose slightly in October after stalling in September, while personal income growth remained marginal, the Commerce Department said today.
Consumer spending, which drives about two-thirds of US economic output, rose 0.2%, matching analysts' consensus estimate.
In September, spending was flat, the department said, revising up its previous reading of a 0.2% decline.
Personal income increased 0.2% for the second consecutive month in October, the weakest rise since December 2013.
Growth in personal income was only half what analysts expected. Wages and salaries, which account for the largest share of personal income, rose 0.3% in October after a 0.2% increase in September.
US inflation remained subdued and well below the Federal Reserve's comfort zone of 2%.
The personal consumption expenditures (PCE) price index, the Fed's preferred inflation measure, rose at an annual rate of 1.4% in October, the same increase as in September.
Excluding volatile food and energy prices, core PCE prices inched up to a 1.6% annual rate, after holding at a 1.5% pace for the previous five months.
Month-on-month, PCE prices rose 0.1% for the second month in a row in October, while core PCE prices climbed 0.2%, double the September rise.
