By Joe Plocek
WASHINGTON (MNI) – September personal income data, already
incorporated into the Q3 GDP data, showed a monthly rebound in spending
at the expense of saving.
Personal income gained 0.4% on the back of a rebound in services
wages. Private wages increased $19.5 billion in September as services
payrolls gained $16.6 billion. Most other income gained, led by a
rebound in government transfers. Income on assets fell $5.7 billion,
however.
Spending advanced accordingly. In chained dollars, the real
spending pattern after revisions stands at +0.3% for July, +0.1% for
August, and +0.4% for September. Spending advanced across categories,
with a notable rebound in services. The level of savings decreased from
August, and the saving rate was down 0.4 point to 3.3%.
October spending data will be reported this week with chain store
and auto results. The September data suggest incomes are rising and
should continue to support the consumer.
**MNI Washington Bureau: Tel. (202)371-2121**
[TOPICS: M$U$$$,MAUDR$,MAUDS$,MT$$$$]
