Personal Income and Consumption Slow in September

Personal income increased $18.6 billion, or 0.1 percent, in September, according to the Bureau of Economic Analysis, down from a 0.4 percent increase in August. Personal consumption expenditures (PCE) increased $15.6 billion, or 0.1 percent, below August’s 0.4 percent increase.

Disposable personal income – personal income less taxes – increased 0.1 percent after gaining 0.4 percent in August.

The personal savings rate – personal savings as a percentage of disposable income – was 4.8 percent, up from 4.7 percent last month.

Wages and salaries decreased $3.7 billion in September, after increasing $36.0 billion in August. The decline was attributable to decreases in the private goods-producing industry and manufacturing.

The price index for PCE decreased 0.1 percent in September, after remaining relatively flat in August. The index excluding food and energy increased 0.1 percent from August and 1.3 percent from a year ago, still below the Federal Reserve’s target of 2.0 percent.

Read the BEA release.