US consumer spending tepid but factory growth up

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US consumer spending tepid but factory growth up

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Mixed news on the US economy where there was surprisingly strong growth last month in the manufacturing sector but personal income fell while consumer spending remained lacklustre.

Beyond manufacturing, the world’s biggest economy still looks less than robust.

Consumer spending rose 0.2 percent in September, slipping from August’s 0.5 percent increase.

One reason for that was an unexpected decline in Americans’ income.

It was down 0.1 percent – the first slide since July 2009. Economists had forecast a 0.2 percent gain.

The data was among the last before central bank officials met to decide stimulus measures.

The Federal Reserve was expected to inject more money into the flagging economy by buying government bonds.

That view was bolstered by the consumer data, which showed no inflation pressure in the economy.

Inflation – excluding food and energy – was flat in September for the first time since April.