U.S. consumers spend less in September

U.S. consumers' personal income and spending continued rising in September, but the growth rate both slowed in the month, the Commerce Department reported Friday.

In September, personal income increased 0.1 percent following a 0.4 percent growth in August. Personal spending also edged up 0.1 percent, lower than the 0.4 percent growth in the previous month.

As consumers became prudent in spending, personal savings rate rose to 4.8 percent in September, compared to 4.7 percent in August.

The price index for the personal consumption expenditure (PCE), a gauge for the inflation level preferred by the U.S. Federal Reserve, increased 0.2 percent from a year ago, compared to the 0.3 percent growth in August. The core PCE price index, excluding volatile food and energy, increased 1.3 percent year on year, the same as in August.

U.S. Federal Reserve this week left the federal funds rate unchanged, but left the door open for a rate hike at the next meeting in December without providing firm commitment to act the end of the year.

Fed officials, including Chairwoman Janet Yellen, have signaled that it will be appropriate to raise interest rate this year as the job market continues to improve. The inflation rate, the other mandate for the Fed, however, has been below the central bank's 2 percent target for years. The low inflation has been one of the reasons leading some Fed officials to favor waiting a bit longer before raising rates. Endit