Americans Make More, Spend More
The Commerce Department announced today [link opens in PDF] that personal income and spending were both up in September from the previous month. Personal income bumped up 0.4% ($48.1 billion), and personal consumption expenditures increased by 0.8% ($87.9 billion).
Goods-producing industries' payrolls improved the most, clocking in a $2.9 billion gain compared to August's $7.2 billion cut.
Spending gains met market expectations, and are significantly higher than last month's 0.1% nudge. The expectation-beating increase in personal spending is bittersweet; auto sales are partially accountable for the rise, but so are higher gasoline prices.
Personal saving increased 3.3% compared to last year, continuing its steady decline from June's 4.4% increase.
Higher income, increased spending, and less saving could be seen as signs of an improving and more confident economy.
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