Income growth of Americans was below expectations for October, while their spending weakened, a sign of caution among consumers as the housing slump restrains the U.S. economy.

A price index for personal consumption expenditures rose 0.3% a second straight month in October compared to the prior month. The PCE price index excluding food and energy, or core PCE, rose 0.2% a second consecutive time.

Compared with a year earlier, the PCE price index climbed 2.9% in October. The year-over-year climb in September was 2.4%. The PCE price index excluding food and energy, year over year, climbed 1.9% in October, the same as in September.

The U.S. Federal Reserve watches the year-over-year PCE price index excluding food and energy closely for signs of problematic inflation. The central bank’s preferred range for this core gauge is considered 1% to 2%.

Personal income increased at a seasonally adjusted rate of 0.2% compared to the month before, the Commerce Department reported Friday. That was the worst performance since April’s 0.3% drop. Income rose an unrevised 0.4% in September.

October personal consumption climbed by 0.2% compared to the month before, decelerating from an unrevised 0.3% increase during September, Commerce said. The modest spending increase was the weakest since a 0.2% climb in June.

The October income and spending numbers fell below expectations on Wall Street. Economists had forecast a 0.4% increase in personal income during October and a 0.3% climb in consumer spending. Adjusted for inflation, consumer spending in October was unchanged.

October disposable personal income — income after taxes — inched 0.1% higher after rising 0.4% in September.

Spending on durable goods, those designed to last three years or longer, fell 0.5% in October, after increasing at that rate in September. Non-durable goods spending increased 0.3% in October, half the 0.6% rate of increase the month before. Spending on services rose 0.4% in October, double the 0.2% rate of increase in September.

Commerce reported personal saving as a percentage of disposable personal income was 0.5% in October. It was 0.7% in September.