Personal consumption expenditures rose 0.3% (3.7% y/y) during October after an unrevised 0.2% September rise. The increase matched expectations in the Action Economics Forecast Survey. In constant dollars, spending edged 0.1% higher (2.3% y/y) following two 0.2% monthly increases. Constant dollar spending on services provided the lift to consumption last month with a 0.2% rise (1.6% y/y). Real outlays on housing & utilities gained 0.3% (1.1% y/y) while real transportation services usage rose 0.2% (2.8% y/y) after declining 0.3%. Constant dollar spending on food services & hotels rose 0.2% (1.5% y/y) after a 0.3% rise. Real health care outlays also improved 0.2% (3.1% y/y) for the third straight month. Constant dollar recreation services expenditures declined 0.3% (+0.5% y/y), off for the third month in the last four. These gains were offset by a 0.8% decline (+5.2% y/y) in constant dollar spending on durable goods after a 1.1% jump. The declined reflected a 2.7% easing (+1.8% y/y) in real motor vehicle buying, the third decline in four months. Outlays on recreational vehicles strengthened 0.7% (11.6% y/y) after slipping 0.1% in September. Constant dollar demand for home furnishings & appliances rebounded 0.5% (3.8% y/y) after a 0.5% fall. Real nondurable goods outlays rose 0.2% (3.2% y/y) after a 0.1% slip. Clothing & footwear demand in constant dollars jumped 1.8% (3.1% y/y) after a 0.1% uptick. Real food & beverage purchases gained 0.2% (2.2% y/y) as did gasoline demand (1.5% y/y).

Personal income was unchanged (4.4% y/y) in October following a 0.3% rise. A 0.3% rise was expected. Wages & salaries improved 0.4% (4.9% y/y) after a 0.1% uptick. Proprietors income fell 1.0% (+5.0% y/y), the first decline in nine months. Rental incomes improved 0.6% (2.3% y/y) after three straight months of slight increase, but receipts on assets fell 1.0% (+0.6% y/y) due to a 1.7% decline (-1.0% y/y) in interest income, the third drop in four months. Transfer receipts improved 0.3% (7.2% y/y) after a 0.2% rise.

Personal disposable income eased 0.1% in October (+4.1% y/y) after rising 0.3% in September. Adjusted for inflation, take-home pay fell 0.3% (+2.8% y/y) and reversed September's increase.

Last month's strength in spending relative to the gain in income lowered the personal savings rate to 7.8% from 8.1%. The level of personal saving rose 10.1% y/y last month.

The PCE chain price index increased 0.2% (1.3% y/y) following two months of stability. The price index excluding food & energy edged 0.1% higher but the y/y increase fell to 1.6%. Energy prices increased 2.6% (-4.2% y/y) after two months of decline. Food prices improved 0.2% (1.1%) following September's stability.

The personal income and consumption figures are available in Haver's USECON database with detail in the USNA database. The Action Economics figures are in the AS1REPNA database