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Personal Income Up 0.5% in Sept.; Spending Is Flat

Associated Press

Americans’ personal income rose 0.5% in September, despite a drop in farm income, while spending growth was the slowest since the October, 1987, stock market crash, the government said today.

The Commerce Department said income rose $19.9 billion to an annual rate of $4.10 trillion last month, following a weak 0.3% increase in August and a strong 0.7% jump in July.

Personal consumption spending, which includes everything except interest payments on debt, was flat in September at an annual rate of $3.26 trillion, following a 0.6% gain in August and a 0.4% increase the month before that.

It was the weakest month for spending since October, 1987, when it fell 0.2%. Analysts had attributed that drop to the shock from the stock crash.

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With spending holding steady and income rising, Americans saved more in September than in any month since May. The personal savings rate was 4.2% last month, up from 3.8% in August.


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