Confident Americans spend and earn more but save less
Purchases rise 0.4% in September, boosting consumption in the quarter
New York — Americans kept on spending in September as income gains cooled, pushing down the savings rate to the lowest this year. Inflation matched the Federal Reserve’s target, reinforcing the central bank’s outlook for gradual interest-rate hikes. Purchases, which account for about 70% of the economy, rose 0.4% from the prior month, matching economists’ estimates, following an upwardly revised 0.5% increase, Commerce Department figures showed Monday. Incomes advanced a less-than-projected 0.2%, the weakest in more than a year, while Americans saved 6.2% of their disposable income, matching the lowest level since 2013. The figures show spending in September helped lift consumption during the quarter to what gross domestic product data Friday showed was the fastest increase since 2014. Last month’s rise reflected gains in durable goods, particularly motor vehicles and parts. At the same time, the slower-than-expected income growth suggests that any meaningful, sustained pay gains re...
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