Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Personal income falls in September

By Charles Riley, staff reporter


NEW YORK (CNNMoney.com) -- Personal income registered an unexpected dip in September, while spending by individuals grew at a slower rate than expected, according to data released by the federal government Monday.

Personal income fell 0.1%, the Commerce Department said. The drop in personal income was a sharp reversal from a revised 0.4% increase registered in August.

According to the Commerce Department, spending by individuals increased by 0.2%.

Economists expected that spending by individuals would rise 0.4% in September, according to a consensus estimate from Briefing.com. Personal income was expected to tick up by 0.3% in the month.

The numbers were the result of a stubbornly difficult economy, according to Scott Hoyt, senior director of consumer economics for Moody's Analytics.

"The underlying takeaway is that conditions remain difficult for consumers, and as a result they are not spending much," he said.

Hoyt pointed to a steep decline in government social benefits as another reason for the drop in spending by consumers.

Those payments decreased by $21.5 billion in September, the result of unemployment compensation legislation, according to Commerce Department.

"These are payments that tend to get spent," Hoyt said.

Meanwhile, the savings rate dropped slightly from the previous month. According to the report, Americans saved $607.6 billion in September, a decrease from $642 billion in August. To top of page

Index Last Change % Change
Dow 17,400.75 -610.32 -3.39%
Nasdaq 4,707.98 -202.06 -4.12%
S&P 500 2,037.41 -75.91 -3.59%
Treasuries 1.58 -0.16 -9.20%
Data as of 1:49am ET
Company Price Change % Change
Bank of America Corp... 13.00 -1.04 -7.41%
Microsoft Corp 49.83 -2.08 -4.01%
Ford Motor Co 12.52 -0.88 -6.57%
General Electric Co 29.82 -1.37 -4.39%
Micron Technology In... 13.21 -0.84 -5.98%
Data as of Jun 24
Sponsors

Sections

For the past 20 years, any airline based in a European Union country has been able to fly anywhere within the single market whenever it wants. Brexit complicates that immensely for a host of carriers. More

Both candidates would increase the country's debt, but Trump would do so "massively," according to a new analysis. More

Startup Spark examined the effects that political candidates had on the human brain and nervous system using a device called BrainWave. Here's what it found. More