Personal Income Outpaces Spending in August

Washington, DC, Oct. 1, 2010–Personal income rose 0.5% in August while real consumer spending rose 0.2%, the Commerce Department said Friday.

Economists had expected a 0.3% increase in income and a 0.4% gain in spending.

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.