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

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 18,132.70 -81.72 -0.45%
Nasdaq 4,963.53 -24.36 -0.49%
S&P 500 2,104.50 -6.24 -0.30%
Treasuries 2.00 -0.01 -0.69%
Data as of 6:53pm ET
Company Price Change % Change
Bank of America Corp... 15.81 -0.23 -1.43%
Apple Inc 128.46 -1.96 -1.50%
General Electric Co 25.99 0.10 0.39%
Microsoft Corp 43.85 -0.20 -0.47%
Chesapeake Energy Co... 16.68 -0.52 -3.02%
Data as of Feb 27
Sponsors

Sections

Berkshire Hathaway CEO Warren Buffett released his 50th annual letter to shareholders. The Oracle of Omaha thinks the next 50 years will be great and knows who will replace him. More

Potential presidential candidate says that improvement in unemployment rate is due to millions of jobless not being counted. More

With the death of Leonard Nimoy, the actor who played Star Trek's Spock, we remember his character's legacy: The technology we use every day. More

A social media frenzy about the color of a dress is bringing fame and fortune for one small British fashion company. More

The top 5 consumer complaints have to do with identity theft, debt collectors, imposters, telephone companies and banks. More