Annual spending growth outpaced annual income growth for the 7th month in a row in August but month-over-month, incomes rose less than expected as The Fed's favorite inflation indicator modestly disappointed MoM.

Against expectations of a 0.4% rise MoM, income rose 0.3$, and while spending growth MoM rose 0.3% as expected, growth has been slowing for 6 months...

And while growth YoY continues in both, August saw it notably slowing... This is the 7th straight month that spending growth has been at or above income growth...

Wages and salaries rose 0.5% MoM, the most since January, the August report showed. Real disposable income, or earnings adjusted for taxes and inflation, increased 0.2% for a second month. 

Private worker wages rose at 5.3% YoY in August, up from +5.1% in July, notably outpacing Government wage growth.

Which held the savings rate at its lowest since Dec 2017...

And finally, The Fed's favorite inflation indicator - Core PCE - slowed modestly back below the mandated 2.0% YoY