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Monday, September 29, 2014

Personal Consumption Rebounded in August

Personal consumption rose 0.5% in August. Personal income rose 0.3%. Both values improved the pace from the month prior, however personal income growth is the second slowest pace all year.



Wage growth grew 0.4% and disposable income improved slightly to 0.3%. Due to no growth of the PCE deflator, real consumption and income growth were the same as nominal growth.

The savings rate declined to 5.4 months, as consumption grew faster than income.

Inflation remained tame; the PCE deflator rose 1.5% above year-ago levels. This was below the 2.0% target of the Federal Reserve.

Read the BEA release.

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