News Column

Consumer Spending Rises, Incomes Fall

December 6, 2013

UPI Business News

hispanic man shopping
Consumer spending in November rose despite a drop in personal income (file photo)

U.S. consumer spending rose 0.3 percent in October, despite a 0.1 percent drop in personal income, the Commerce Department said Friday.

Spending increased by $32.7 billion while incomes fell by $10.8 billion, the department's Bureau of Economic Analysis said.

That swung disposable incomes into the red.

The figure that defines how much consumers have left over after their monthly necessities are accounted for dropped 0.2 percent, or by $23.6 billion, in October.

The figures are a turnaround from September, when incomes rose by 0.5 percent, or by $64.3 billion, and personal consumption expenditures rose by 0.2 percent or $23.8 billion.

Price gains remained subdued in October -- a tendency that is predictable when incomes are stagnant.

The price index for personal spending fell less than 0.1 percent after rising 0.1 percent in September.

The price index for core items, which exclude food and energy items, rose 0.1 percent, matching the gain in September, the bureau said.

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Original headline: U.S. consumer spending rose in October, but incomes fell


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