US: Modest income growth in September - Wells Fargo

Households saw a more modest rise in income for September, but that didn’t hold back Q3 consumption, explained analysts at FXStreet.

Key Quotes: 

“Consistent with the breakneck pace of consumption in the third quarter, personal spending rose 0.4% in September. But, with a more modest reading for personal income (up 0.2%), consumers dipped into their savings last month to fuel consumption. The saving rate slid to a still-healthy rate of 6.2%. Spending was driven by a surge in durables, which, at least in part, was due to replacement demand after Hurricane Florence.”

“While the consumer is entering the fourth quarter with considerable momentum, rising inflation and interest rates will likely be a headwind to growth.”