Real Disposable Income Per Capita Slides For 2nd Straight Month

Personal Income rose less than expected in September (+0.3% vs +0.4% exp MoM) and thanks to a downward revision in August, Spending rose more than expected (+0.5% vs +0.4% MoM).

In context, income and spending continue to rise…

 

Both income (+3.2%) and spending (+3.7%) growth rose in September on a year-over-year basis with service sector wages (+$19.9bn) rising dramatically relative to goods-producing (+$4.3bn).

Chart: Bloomberg

Thanks to the historical revisions, personal savings dipped a little from 5.8% to 5.7%.

 

But perhaps the most notable aspect of today's data is the second straight decline in real disposable income, which declined to $39,092 in September after peaking at $39,117 in July.

This is the first time since Jan 2013 that real disposable income per capita has fallen two straight months.

via http://ift.tt/2eqWRp3 Tyler Durden

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