REPEAT: MNI DATA ANALYSIS: US Pers Income Up 0.4% In Sept>

Repeats Story Initially Transmitted at 12:30 GMT Oct 27/08:30 EST Oct 30

--Core PCE Price Index +0.1%;Y/Y Still +1.3%, Tying Low Since Nov 2015

--Sept Nominal PCE Gain Largest Since Aug 2009; Real PCE +0.6%

By Kevin Kastner, Sara Haire, and Holly Stokes

     WASHINGTON (MNI) - Personal income rose 0.4% in September as 

expected, while the core PCE price index was on target with another 0.1% 

gain, keeping the year/year rate for core inflation growth at 1.3%, 

tying the slowest pace in two years, data released by the Commerce 

Department Monday morning showed. 

     The year/year rate of growth for September core PCE prices suggests 

no underlying inflation concerns before this week's FOMC meeting, as 

members look ahead to a possible rate hike in December. 

     Nominal PCE was up 1.0% in September, stronger than the 0.9% rise 

expected and the strongest pace since August 2009. Durable goods 

spending surged by 3.2%, lifted by very strong vehicle sales. Nondurable 

goods spending rose 1.5% on higher energy prices, while services 

spending was up 0.5%. 

     For income, there were gains were reported for all of the major 

categories, though the pace of growth for transfer receipts slowed. 

Wages and salaries were up 0.4% in the month as the decline in payrolls 

was more than offset by a 0.5% rise in earnings. 

     Disposable personal income rose 0.4% in the month, while real 

disposable income was flat. The saving rate fell to 3.1% in September 

from 3.6% in August, hitting the lowest point since December 2007. 

     The overall PCE price index was up 0.4% in September following a 

0.2% gain in August. The year/year pace rose to 1.6% from 1.4% in the 

previous month. 

     Real PCE was up 0.6% in September following a 0.1% decrease in 

August. After inflation adjustment, durable goods PCE rose 3.5%, while 

nondurable goods PCE rose 0.3%, while services PCE was up 0.3%. 

     BEA said it could not quantify the impact of the hurricanes on the 

data, but did say it made adjustments to estimates where source data 

were not available. 

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