All tagged Personal Consumption

Consumer spending increased 0.6 percent in September, surprising in light of the meager 0.1 percent gain in personal income. As a result, the saving rate plunged to 3.6 percent, its lowest level since before the recession. This is the third consecutive month that spending has outpaced income. There are several reasons for this. Pent-up demand has been building, coaxing consumers to loosen up a little despite the abysmal consumer confidence readings....
Personal income has trended lower in recent months, which has kept a lid on spending according to a report released last week by the U.S. Bureau of Economic Analysis. Personal income fell 0.1 percent in August compared with July. Wage income, an important component of personal income, fell 0.2 percent, not surprising in light of the weak labor market. Personal consumption expenditures managed a weak gain of 0.2 percent last month as consumers trimmed their savings rate in order to continue spending. Real (inflation-adjusted) expenditures were flat, however, as inflation rose 0.2 percent.