Consumer Spending Slows in September
NEW YORK (TheStreet) -- Personal income unexpectedly fell in September while personal spending grew less than expected, according to latest data from the Bureau of Economic Analysis.
Personal income dropped 0.1%, after rising 0.4% in August. Economists were expecting incomes to increase, according to consensus estimates from Briefing.com. Real disposable income, adjusted for price changes, decreased 0.3%.
Emergency unemployment insurance benefits which boosted personal incomes in August, fell in September. Excluding the impact of unemployment compensation legislation, personal incomes increased 0.1% in September, still lower than a 0.3% increase in August.
Personal consumption expenditure (PCE) rose 0.2% during the month, following a 0.5% increase in August. Personal saving as a percentage of disposable personal income was 5.3% in September, compared with 5.6% in August.
Real personal consumption expenditure, which adjusts for price changes, increased 0.1% in September, compared with an increase of 0.3% in August. An increase in durable goods spending was offset by a decrease in nondurable goods expenditure and a modest increase in services spending. The PCE price index, the preferred barometer of inflation for the Federal Reserve, expanded 0.1% in September, after rising 0.2% in August. On a year-on-year basis, the index rose 1.4% in September, according to preliminary estimates. Excluding volatile food and energy prices, the PCE price index increased by the slowest rate in 2010, up 0.9%, after rising 1.1% in August. The Fed believes inflation at current levels is too low and below its mandate for maintaining price stability. The central bank has indicated that it prefers inflation at close to 2%. -- Written by Shanthi Venkataraman in New York>To contact the writer of this article, click here: Shanthi Venkataraman. >To follow the writer on Twitter, go to http://twitter.com/shavenk. >To submit a news tip, send an email to: tips@thestreet.com.
Select the service that is right for you!
COMPARE ALL SERVICESAction Alerts PLUS
TRY IT FREEJim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
Product Features:
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
TheStreet Quant Ratings
TRY IT FREENew! $49.95/yr
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
Product Features:
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Stocks Under $10
TRY IT FREEDavid Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.
Product Features:
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
- Weekly roundups
Dividend Stock Advisor
TRY IT FREEJim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
Product Features:
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
TRY IT FREEAll of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
Product Features:
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Options Profits
TRY IT FREEOur options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
Product Features:
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV
