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The U.S. Commerce Department released personal spending and income figures on Friday. Personal spending rose 0.1% in September, missing expectations for a 0.2% gain, after a 0.4% increase in August. It was the smallest increase since January.
Consumer spending makes more than two-thirds of U.S. economic activity. Consumer spending grew 3.2% in the third quarter, after a 3.6% increase in the second quarter.
This data suggests that American consumers were cautious due to a slowdown abroad.
Personal spending was partly driven by higher demand for durable goods and services. Spending on durable goods rose 0.8% in September, while spending on services increased by 0.4%.
The saving rate climbed to 4.8% in September from 4.7% in August.
Personal income increased 0.1% in September, missing expectations for a 0.2% rise, after a 0.4% gain in August. It was the smallest rise since March.
August's figure was revised up from a 0.3% increase.
Wages and salaries were flat in September, after a 0.5% rise in August.
The personal consumption expenditures (PCE) price index excluding food and energy rose 0.1% in September, missing forecasts of a 0.2% increase, after a 0.1% gain in August.
On a yearly basis, the PCE price index excluding food and index remained unchanged at 1.3% in September.
The PCE index is below the Fed's 2% inflation target. The PCE index is the Fed's preferred measure of inflation.
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