The U.S. Commerce Department’s Bureau of Economic Analysis today released data on personal income and outlays for October 2010. Personal income increased 0.5 percent in October, supported by a strong gain in wages and salaries. This increase slightly exceeded private-sector expectations of a 0.4-percent increase. Real consumer spending rose 0.3 percent in October, supported by a surge in purchases of motor vehicles. Personal income and consumer spending gains in October are consistent with private-sector expectations of moderate growth in gross domestic product (GDP) during the fourth quarter.
“Today’s figures represent a solid start to spending in the fourth quarter,” said U.S. Commerce Department Acting Deputy Secretary Rebecca Blank. “However, high unemployment remains an impediment to stronger gains in personal income, consumer spending and overall economic growth in the coming quarters, which is why the president and this administration remain focused on supporting job creation for the American people.”