Gains in September Personal Income and Spending

The markets may be closed for trading due to Hurricane Sandy, but the futures were scheduled to stay open until 9:15 a.m. EST on Monday.

The Commerce Department today released personal income and spending numbers for the month of September. Income rose by 0.4% for the month and the gain in spending was 0.8%. Bloomberg and Dow Jones both had estimates of 0.4% for the gain in income and was looking for 0.6% on spending.

Today’s report stated that the personal income increased by $48.1 billion and disposable personal income rose by some $43.0 billion. Personal consumption expenditures increased by $87.9 billion. In August, these readings were up only $17.8 billion for income, or 0.1%.

On wages and salaries the Commerce Department noted:

Private wage and salary disbursements increased $19.5 billion in September, compared with an increase of $4.1 billion in August. Goods-producing industries’ payrolls increased $2.9 billion, in contrast to a decrease of $7.2 billion; manufacturing payrolls increased $0.5 billion, in contrast to a decrease of $6.3 billion.  Services-producing industries’ payrolls increased $16.6 billion, compared with an increase of $11.3 billion.  Government wage and salary disbursements increased $1.4 billion, compared with an increase of $2.8 billion.

It said on spending:

Personal outlays — PCE, personal interest payments, and personal current transfer payments — increased $93.1 billion in September, compared with an increase of $65.0 billion in August.  PCE increased $87.9 billion, compared with an increase of $59.9 billion.

JON C. OGG