Personal income continued its pattern of modest increases in September, while spending rebounded from a weak August showing, with both figures reflecting the impact of the late-summer hurricanes that hit Florida and other parts of the southeast U.S., according to a government report Monday.
Personal income rose 0.2%, vs. a revised 0.4% gain in August and slightly less than economists had expected. It's the third month in four that income has increased 0.2%.
Spending, however, jumped 0.6%, which was more than expected and up from August's revised 0.1% decline.
Put together, the data show an economy that continues to expand but is in no danger of overheating.
The government said income was hurt by uninsured losses of both business and personal property as a result of the four hurricanes.
Auto sales accounted for about half of September's increase and virtually all of August's decline, the government said.