02:37 PM EDT, 09/27/2024 (MT Newswires) -- Personal income was up 0.2% in August, below expectations, with a 0.5% gain in wage and salaries and increases in rental income and transfer payments offset by declines in proprietors' income and return on assets.

Personal consumption expenditures rose by 0.2% in August after a 0.5% increase in July, with an increase in services spending partially offset by a decrease in goods spending.

After an adjustment for a 0.1% increase in the PCE price index, real consumption was up 0.1% in August after a 0.4% gain in July. The year-over-year rate for the overall price index slowed to 2.2% from 2.5%.

Core PCE prices rose by 0.1% in the month while the year-over-year rate accelerated to 2.7% from 2.6%, still above the Federal Reserve's 2% target.

The advance goods trade deficit narrowed to $94.26 billion in August from $102.84 billion in July, reflecting an import decline and an increase in exports. The full trade report is scheduled to be released on Oct. 8.

Advance wholesale inventories rose by 0.2% while advance retail inventories increased by 0.5%. Wholesale inventories will be updated on Oct. 9, while retail inventories are eligible for revision on Oct. 17.

The University of Michigan consumer sentiment index for September was revised higher to 70.1 from the preliminary estimate of 69.0 and was well above August's reading of 67.9.

Michigan said that inflation expectations slowed in September for the one-year horizon but accelerated for the five-year horizon.

The Kansas City Fed's services index fell to minus 2 in September from 5 in August. Other regional services data already released have been mixed. The ISM's services reading for September is due for released on Oct. 3.

The Q3 GDPnow estimate from the Atlanta Fed is for a 3.1% gain, revised up from a 2.9% gain reported on Sept. 18. The next update is scheduled for Oct. 1.

The St. Louis Fed's GDP nowcast estimate for Q3 is for a 1.41% increase, revised down from 1.55% in the previous estimate.