ISTANBUL: Americans’ personal income growth and personal spending gained pace in September from the previous month, according to figures released Thursday. Personal income climbed $71.6 billion, or 0.3%, in September, in line with estimates and showing an increase from a 0.2% rise in August. “The increase in current-dollar personal income in September primarily reflected increases in compensation and personal current transfer receipts that were partly offset by decreases in personal interest income and proprietors’ income,” the agency stated.
According to Anadolu Agency, disposable personal income, defined as personal income minus personal current taxes, rose $57.4 billion in September, or 0.3%, from the previous month. Personal spending, also known as personal consumption expenditures (PCE), increased $105.8 billion, or 0.5%, in September, surpassing expectations of a 0.4% rise and accelerating from a 0.3% gain in August. The $105.8 billion increase in current-dollar PCE in September reflected a $72.1 billi
on rise in spending for services and a $33.7 billion increase in spending for goods.
Within the services sector, the largest contributors to the increase were health care, housing, and utilities. For goods, the main contributors were other non-durable goods, with prescription drugs leading, followed by food and beverages, and motor vehicles and parts. The personal income figure for August was revised to $57 billion from $50.5 billion, marking a 0.2% increase. Disposable personal income for August was also revised upward to $37.7 billion from $34.2 billion, also a 0.2% gain.
The figure for personal consumption expenditures for August was revised to $55.5 billion from $47.2 billion, reflecting a gain of 0.3% from 0.2%. Personal outlays increased by $106.3 billion in September, reflecting the sum of personal consumption expenditures, personal interest payments, and personal current transfer payments. Total personal savings stood at $1 trillion last month, with the personal saving rate, which shows personal sav
ing as a percentage of disposable personal income, at 4.6% in September.