U.S. consumer spending up 0.2 percent in September

The Commerce Department reported on Thursday that consumer spending in the U.S. rose 0.2 percent m-o-m in September, following a revised 0.2 percent m-o-m gain in August (originally a 0.1 percent m-o-m advance). Economists had forecast the reading to show a 0.2 percent m-o-m growth.

Meanwhile, consumer income increased 0.3 percent m-o-m in September, following a revised 0.5 percent m-o-m gain in the previous month (originally a 0.4 percent m-o-m climb). Economists had forecast a 0.3 percent m-o-m advance.

The September increase in personal income primarily reflected gains in personal interest income, farm proprietors' income, and government social benefits to persons.

The personal consumption expenditures (PCE) price index, excluding the volatile categories of food and energy, which is the Fed's preferred inflation measure, was unchanged m-o-m in September after a 0.1 percent m-o-m increase in the prior month. Economists had projected the index would rise 0.1 percent m-o-m.

In the 12 months through September, the core PCE increased 1.7 percent, following an unrevised 1.8 percent growth in the 12 months through August. Economists had forecast a gain of 1.7 percent y-o-y.