MW: Aug. personal income up 0.5%, spending up 0.2%
By Greg Robb
WASHINGTON (MarketWatch) - Personal income rose 0.5% in August while real consumer spending rose 0.2%, the Commerce Department said Friday. Wall Street economists had expected a 0.3% increase in income and a 0.4% gain in spending. Inflation stayed low. The personal consumption expenditure price index rose 0.2% in August compared with July. Inflation is up 1.5% in the past year, the same pace as July. The core PCE was up 0.1% in August and is up 1.4% year-on-year. Nominal spending rose 0.4%. Real disposable incomes rose 0.5% in August after remaining flat in July. With incomes rising faster than spending, the personal savings rate rose to 5.8% of disposable income from 5.7% in July.
