Americans’ spending grew in September at a rate that was double the increase of their income, according to the U.S. Bureau of Economic Analysis (BEA).
According to the BEA, personal income in the U.S. grew by $48.1 billion, or 0.4 percent, while spending grew by $87.9 billion, or 0.8 percent.
That was an improvement over August, which saw personal income increase by 0.1 percent and spending grow by 0.5 percent.
Disposable income remained nearly flat once adjusted for inflation and taxes. That followed a 0.3 percent decrease in August.
Personal income refers to total earnings from wages and other sources, while disposable income is what households have left to spend and save after taxes.
Payrolls in goods-producing industries increased the most, at $2.9 billion, compared to a decrease of $7.2 billion in August. Manufacturing payroll grew by $500 million, up from a $6.3-billion decline in August.
Read more
