Personal Income, Spending Growth Tumbles In September As Savings Rate Slumps

Following August's spending and income growth slowdown, September saw MoM growth in spending and income slow with income missing expectations notably.

  • Personal Income rose just 0.2% MoM (versus 0.4% revised higher for August and expectations of a 0.4% rise)

  • Personal Spending rose 0.4% MoM (versus 0.5% revised higher for August and expectations of a 0.4% rise).

So both shopwed slowing growth MoM...

 

Year over year spending growth is at its slowest since May, and income growth at its slowest since March...

Government workers wages grew slightly faster YoY (+2.4%) as Private worker wage growth slipped lower to +5.0% YoY...

 

This sent the savings rate down to its lowest since Dec 2017...

A slumping savings rate and slumping spending smells like the consumer is at their limit.