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Post by bot on Dec 6, 2013 15:49:07 GMT -5
U.S. consumer spending rises 0.3% in October WASHINGTON (MarketWatch) - Consumer spending in the U.S. rose by 0.3% in October, the Commerce Department said Friday, indicating that Americans continued to spend at a modest rate despite the government shutdown. Personal income fell a seasonally adjusted 0.1%, however. The decline in income - the first since January - stemmed from a plunge in earnings for farmers. Many benefited from a huge balloon payment in September related to a class-action suit against the government for past discrimination against black farmers. Wages and salaries for American workers, however, rose at a steady clip. Economists surveyed by MarketWatch had forecast a 0.3% advance in both spending and personal income. Since incomes fell and spending rose, the personal savings rate dropped to 4.8% from 5.2%. Also, inflation as gauged by the PCE price index was unchanged in October. The core rate excluding food and energy edged up 0.1%. Over the past year, the PCE has risen a scant 0.7% overall and just 1.1% on a core basis.
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