The Bureau of Economic Analysis said that personal incomes rose 0.6 percent in October, its fastest monthly pace of growth since April. On a year-over-year basis, personal incomes have increased 3.9 percent, a 9-month high and definite progress from the 3.4 percent pace seen in August. At the same time, total manufacturing wages and salaries increased from $834.4 billion in September to $840.6 billion in October. Overall, manufacturing wages and salaries have trended in the right direction, up from the $780.0 billion and $806.7 billion averages of 2014 and 2015, respectively.
Meanwhile, personal spending increased 0.3 percent in October, rising for the second straight month but slowing from the 0.7 percent gain observed in September. Durable and nondurable goods purchases rose 1.0 percent and 1.4 percent, respectively, for the month. This included decent growth in spending for food and beverages purchased for the home, motor vehicles and parts and recreational goods and vehicles. In general, Americans have been more willing to open their pocketbooks in recent months relative to a more-cautious approach seen earlier in the year. Along those lines, personal consumption expenditures grew 4.2 percent year-over-year in October, up from 2.9 percent in March and its quickest pace since January 2015. Read More