September US PCE Prices Rise as Expected; Income, Spending Both Increase at Slower Rates

08:44 AM EDT, 10/29/2026 (MT Newswires) -- Personal income rose by 0.2% in September following August's 0.3% gain, below the 0.3% gain expected in a survey conducted by Bloomberg. Personal consumption expenditures were up 0.5%, below the 0.6% increase expected and following a 0.9% gain in the previous month. After adjustment for inflation, real PCE held steady after a 0.5% increase in August, compared with expectations for a 0.1% increase. The PCE price index increased by 0.5%, as expected, lifting the year-over-year rate to 3.6% from 3.4%. The price index increased by 0.3% month-over-month in August. The core PCE price index rose by 0.3%, as expected after a 0.3% gain in August. The year-over-year rate accelerated to 3.1% from 3.0% in the previous month. The monthly report on personal income and spending is released by the Bureau of Economic Analysis about one month after the period it is measuring. Personal income is broken down into various categories, with wages making up the largest portion. Spending is reported in two ways-before and after adjustment for inflation movements. The price measures in the report are closely watched by the Federal Reserve, particularly the year-over-year. Faster consumption growth is usually a positive for stocks but combined with soft income readings could suggest consumers are overextending. Bonds are sensitive to the price measures if the pace is above the Federal Reserve's 2% target.