2017.11.3022:06:00UTC+00U.S. Consumer Spending Cools as Post-Storm Auto Sales Surge Ease

U.S. consumer spending weakened in October as a hurricane-related surge in automobile sales faded, while a sustained rally in underlying price pressures indicated that a recent disinflationary trend may have reached its end.

A report from the Commerce Department said consumer spending increased 0.3 percent in the previous month after jumping 0.3 percent in the previous month after surging 0.9 percent in September. The previous month's increase in consumer spending was in accordance with economists' expectations.

The surge in spending in September was the biggest since August 2009 and was driven by people in Texas and Florida buying replacements for vehicles destroyed when Hurricanes Harvey and Irma devastated the states in August and September. In October, spending on long-lasting goods such as autos declined 0.1 percent after rising 2.9 percent in September.

Spending on nondurable goods increased 0.2 percent during the period.

Despite overall inflation cooling during the month, underlying price pressures rose again at a steady pace in October. The personal consumption expenditures (PCE) price index, the Fed's preferred measure of inflation, increased 0.2 percent following a similar increase in September. Meanwhile, the so-called core PCE rose 1.4 percent year-on-year in October, matching the gain in September.