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Friday, October 31, 2014

Personal Consumption Declined in September

Personal consumption declined 0.2% in September. This is the first monthly decline since January, which was driven by unusually cold weather. Personal income grew 0.2%, the slowest growth all year. 3Q GDP consumption growth was strong, however this report may pull down GDP slightly in later revisions.



Wage growth improved 0.2% and disposable income improved just 0.1%. Real personal income increased a modest 0.1% in September. Dividends drove income growth in September.

The savings rate increased to 5.6 months, as both consumption declined and income increased.

Inflation remained tame; the PCE deflator rose 0.1% in September and was 1.4% above year-ago levels.

Read the BEA release.

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