Personal Income Growth Expectations Surpassed in the U.S.: September Report

Analysis of Personal Income Data in the USA

The U.S. Department of Commerce has shared personal income and spending data for the period of September 2023 with the public. In September, personal income increased by 0.4% compared to the previous month, surpassing the expected 0.3% increase by market analysts. This positive development has reinforced optimistic expectations regarding economic growth. Additionally, upon examining the data, it was noted that a similar increase was recorded in the previous month (August).

Improvement in Personal Consumption Expenditures

Personal consumption expenditures in September also showed a 0.3% increase on a monthly basis. Although this rate is lower than the 0.5% increase recorded in August, it was noteworthy that it aligned with market expectations. Consumer spending serves as a critical indicator in determining the direction of economic activity.

Fed's Inflation Indicators

In September, the personal consumption expenditures price index also experienced a 0.3% monthly increase and a 2.8% annual increase. This figure exhibited a pattern in line with market expectations for both monthly and annual measurements. The index also showed a similar increase in August, rising by 0.3% monthly and 2.7% annually.

Core Personal Consumption Expenditures

The U.S. Federal Reserve (Fed) considered the monthly increase of 0.2% and an annual increase of 2.8% in the core personal consumption expenditures price index in September as a critical indicator from the perspective of inflation. A 2.9% annual increase was anticipated for the upcoming period. In the previous August, this index recorded a monthly increase of 0.2% and an annual increase of 2.9%.