US personal incomes and spending rise more quickly than expected in August

(Sharecast News) - Personal incomes and spending in the US both rose by more than expected last month. Price pressures on the other hand were in line with the consensus, when not a shade lower.

According to the US Department of Labor, in seasonally adjusted terms personal incomes and spending grew by 0.4% and 0.6% month-on-month.

Economists had anticipated increases of 0.3% and 0.5%, respectively.

The headline price deflator for personal consumption expenditures was up by 0.3% versus July and by 2.7% in annual terms, both as expected.

Core PCE prices meanwhile were 0.2% and 2.9% higher with both also meeting economists' forecasts.

July's monthly increase in core PCE prices was however revised down by a tenth of a percentage point to 0.2%.

The personal savings rate slipped from 4.8% during the previous month to 4.6%.