Personal consumption expenditures in the USA increased by 0.2 percent monthly in August, below expectations.
The US Department of Commerce announced personal income and consumption expenditures data for August. Accordingly, personal incomes increased by 0.2 percent in August compared to the previous month.
Market expectation was that personal incomes in the country would increase by 0.4 percent in this period. The increase in Americans’ personal income was calculated as 0.3 percent in July.
Personal consumption expenditures recorded the lowest increase in 7 months with 0.2 percent on a monthly basis in August.
Market expectation was that the data would increase by 0.3 percent in this period. Personal consumption expenditures increased by 0.5 percent in July.
FED’S INFLATION INDICATOR IS BELOW EXPECTATIONS ON A MONTHLY BASIS
Personal consumption expenditures price index increased by 0.1 percent monthly and 2.2 percent annually in August. The index, which recorded its lowest increase on an annual basis since February 2021, was predicted to increase by 0.2 percent monthly and 2.3 percent annually in this period. The index increased by 0.2 percent monthly and 2.5 percent annually in July.
The core personal consumption expenditures price index, which is taken into account by the US Federal Reserve (Fed) as an inflation indicator and excludes food and energy items, increased by 0.1 percent on a monthly basis and 2.7 percent on an annual basis in August.
While the annual change in the index was in line with market expectations, the increase was estimated to be 0.2 percent on a monthly basis. The core personal consumption expenditures price index increased by 0.2 percent monthly and 2.6 percent annually in July.
