US: Higher energy prices may held have held back spending in September - Wells Fargo

On Monday in the US, personal income and spending data will be released. Analysts at Wells Fargo, expect an increase of 0.4% in personal income and 0.3% in personal spending.  

Key Quotes: 

“With this morning’s Q3 GDP release, we learned that personal consumption expenditures rose 4.0% over the quarter. Continued strength in consumption partly reflects the boost to disposable incomes from tax cuts earlier this year. On Monday, we will receive September personal income and spending data. The strength exhibited in Q3 consumption, however, all but guarantees roughly a 0.3% nominal rise in personal spending for September.”

“The wages and salaries component of income posted its largest monthly increase since January in August, and while Hurricane Florence weighed on employment growth in September, the undeniably tight labor market appears to finally be translating to improvement in wages. Even with wage gains, however, energy
prices remain elevated, which may have held back overall spending for September.”