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Economy

Personal Income Rises Again in September

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By Chris Lange Published
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The U.S. Department of Commerce released the September numbers for personal income and outlays. Personal income has been growing, but spending fell slightly on volatile auto sales and lower gas prices. It was recorded at 0.3% in September, against a Bloomberg estimate of 0.3% and following a 0.3% increase in August.

Friday’s report shows continued moderate growth in income. Spending has been volatile on a monthly basis, and the September numbers are not as surprising.

The wages and salaries component increased 0.2%, following a 0.5% gain from August. Averaging the wage gains leaves consumer basic income moderately healthy.

Personal spending fell 0.2%, following the 0.5% increase in August. The durable component dropped 2.0%, after a 2.1% gain in August, reflecting swings in auto sales. Ultimately lower gas prices would pull down nondurables.

Nondurable spending fell another 0.3%, after a 0.4% fall in August. Services read at 0.2%, after a 0.5% spike in August.

Personal consumption expenditures (PCE) inflation stayed soft, and the September number matched the estimate of a 0.1% increase after a dip of 0.1% in August. Core PCE inflation met expectations at 0.1% in September and posted the same number in August.

ALSO READ: States Where Poverty Is Worse Than You Think

Photo of Chris Lange
About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.

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