WASHINGTON, Dec. 1 (UPI) -- The U.S. Commerce Department said Wednesday personal income posted its largest gain in five months during October.
Consumer spending rose at an even higher pace and the savings rate touched its lowest level since 2001.
Commerce said personal income rose 0.6 percent after rising 0.2 percent in September and personal consumption was up 0.7 percent, after climbing 0.6 percent in September.
Wall Street economists had expected both personal income and spending to rise 0.5 percent in October.
The report showed proprietor and rental income both advanced last month after falling in September due to the four hurricanes that battered the east coast.
Income after taxes rose 0.6 percent in October, following a revised 0.2 percent advance in September, originally reported as 0.1 percent.
Personal saving as a percentage of disposable personal income fell to 0.2 percent in October from 0.3 percent the prior month, the lowest rate since October 2001.
A price index for personal consumption expenditures excluding food and energy rose at a 0.1 percent rate during October compared to the previous month. In September, the month-to-month change in the index was also 0.1 percent.
