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Last Update: 28-Oct-11 09:46 ET
Personal Income and Spending Strengthen in September
The data in the September personal income and spending report were already incorporated into the advance third quarter GDP release. If there were no revisions to July or August data, the GDP report already showed that income declined 0.2% and spending increased 1.2% in September.
Minor downward revisions to July and August income data offset the decline in income recorded by the GDP report. Personal income actually increased 0.1% in September, slightly less than the Briefing.com consensus forecast of 0.3% growth.
Strong upward revisions, especially in July (0.9% from 0.7%) cut into the expected increase in spending from the GDP report. Personal spending increased 0.6% in September, exactly what the consensus expected.
There was nothing unusual in the spending data. Durable goods increased 2.2% in September after falling 1.1% in August. The gains were mostly in the auto sector.
Nondurable goods consumption increased 1.1%.
Services consumption slowed, increasing 0.2% in September after increasing 0.7% in July and 0.3% in August.
Minor downward revisions to July and August income data offset the decline in income recorded by the GDP report. Personal income actually increased 0.1% in September, slightly less than the Briefing.com consensus forecast of 0.3% growth.
Strong upward revisions, especially in July (0.9% from 0.7%) cut into the expected increase in spending from the GDP report. Personal spending increased 0.6% in September, exactly what the consensus expected.
There was nothing unusual in the spending data. Durable goods increased 2.2% in September after falling 1.1% in August. The gains were mostly in the auto sector.
Nondurable goods consumption increased 1.1%.
Services consumption slowed, increasing 0.2% in September after increasing 0.7% in July and 0.3% in August.
