Personal Spending Disappoints in September

Consumer spending in the US shrank for the first time in eight months by 0.2 percent in September following a 0.5 percent increase in August. Yet, personal income rose 0.2 percent.
Bureau of Economic Analysis | Joana Taborda | joana.taborda@tradingeconomics.com 10/31/2014 12:47:07 PM
Personal income increased $22.7 billion, or 0.2 percent, and disposable personal income (DPI) increased $15.7 billion, or 0.1 percent, in September. Personal consumption expenditures (PCE) decreased $19.0 billion, or 0.2 percent. In August, personal income increased $50.7 billion, or 0.3 percent, DPI increased $37.5 billion, or 0.3 percent, and PCE increased $58.7 billion, or 0.5 percent, based on revised estimates.

Real DPI increased less than 0.1 percent in September, compared with an increase of 0.3 percent in August. Real PCE decreased 0.2 percent, in contrast to an increase of 0.5 percent.

Private wages and salaries increased $12.6 billion in September, compared with an increase of $36.3 billion in August. Goods-producing industries' payrolls increased $0.7 billion, compared with an increase of $4.8 billion; manufacturing payrolls decreased $0.3 billion, in contrast to an increase of $2.2 billion. Services-producing industries' payrolls increased $11.9 billion, compared with an increase of $31.4 billion. Government wages and salaries increased $1.4 billion, compared with an increase of $0.9 billion.

Personal saving -- DPI less personal outlays -- was $732.2 billion in September, compared with $702.0 billion in August.

Personal Spending Disappoints in September