**MNI: 5 Things We Learned From October Personal Income Data>

By Holly Stokes and Kevin Kastner

     WASHINGTON (MNI) - The following are the key points from the 

October personal income, spending, and price data released Thursday by 

the Bureau of Economic Analysis: 

     - The core PCE price index rose 0.2% (+0.207% unrounded) and 

followed an upward revised 0.2% gain in September. The y/y rate 

held at 1.4% (it was 1.3% previously in September), but is likely enough 

to support a December rate hike.

     - Overall PCE price index rose only 0.1% as energy fell 1.1%, 

cutting the year/year rate to +1.6% from +1.7% in September, but still 

above the summer trend of 1.4%. 

     - Personal income +0.4% vs +0.3% expected, while current dollar 

PCE +0.3%, as expected. Real PCE was +0.1% after +0.5% in September. The 

October level was up only 1.7% at an annual rate from the 3Q average vs 

+2.3% in 3Q.

     - Income categories were all higher, though with a slower pace of 

growth for proprietors' income and transfer receipts. Wages and salaries 

rose 0.3% despite the flat reading for hourly earnings.

     - October savings rate of 3.2% after 3.0% in September, but still 

below trend.

     ** MNI Washington Bureau: 202-371-2121 ** 

[TOPICS: MAUDS$,M$U$$$,MAUDR$]