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Consumers spent 0.6 pct. more in September but their incomes stayed weak and they saved less
WASHINGTON (AP) ' Consumers boosted their spending in September at three times the pace of the previous month but their incomes barely budged. They financed the gains by saving at the lowest level since the start of the Great Recession.
The Commerce Department says consumer spending rose 0.6 percent in September, helped by a big rise in purchases of durable goods such as autos. But incomes rose only 0.1 percent after having fallen by the same amount in August. After adjusting for inflation, after-tax incomes fell 0.1 percent last month, the third straight monthly decline in after-tax incomes.
The savings rate fell to 3.6 percent. That's the lowest level since December 2007, just as the recession was beginning.