The Commerce Department says consumer spending increased 0.3 per cent in October compared with September when spending rose 0.2 per cent. Wages and salaries rose a slight 0.1 per cent after a much stronger 1 per cent rise in September.
Overall income actually fell 0.1 per cent following a 0.5 per cent rise in September. But September's gain was inflated by a legal settlement that boosted farm income that month, leading to a big decline in farm income in October.
The personal saving rate dipped to 4.8 per cent of after-tax income in October, down from 5.2 per cent in September, reflecting the difference between spending and income.Suggest a correction