Spending Outpaced Incomes In September
October 28, 2011 by UPI - United Press International, Inc.
WASHINGTON, Oct. 28 (UPI) — Consumer spending outpaced a 0.1 percent rise in incomes in September, the U.S. Commerce Department’s Bureau of Economic Analysis said Friday.
Despite two months of flat incomes, spending rose 0.6 percent in September, following a 0.2 percent rise a month ago. Incomes rose 0.1 percent after falling 0.1 percent in August, the department said.
That means savings are decreasing and economists are concerned that consumers cannot keep spending beyond their means.
In September, disposable incomes rose 0.1 percent, a slight increase from August, when disposable incomes were unchanged.
Consumer spending is a critical economic component, often cited as representing 70 percent of the nation’s gross domestic product.
In September, core prices for consumers, which excludes energy and food prices, was unchanged, after rising 0.2 percent in August.
For all items, prices rose 0.2 percent, compared with 0.3 percent in August.