Personal Spending, Incomes Rise in September

October 31, 2005 9:10 AM, EST

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ersonal spending rose 0.5% in September, while incomes rose 1.7%, the Commerce Department reported Monday.

The spending rise — which followed a 0.5% drop in August — adjusted for inflation fell 0.4%, after a comparable 1% drop in August, Commerce said.

Consumer spending increases can boost demand for new factory goods and the trucking shipments that get them to stores.

The spending gain matched economists’ projections while incomes were projected to rise 0.3%, Bloomberg reported.

Inflation-adjusted spending on durable goods such as automobiles fell 2.4% following an 8.6% drop in August, while spending on services, which accounts for about 60% of all spending, rose 0.3%.

Incomes rose 6.3% in September over a year earlier, paced by a 6% gain in wages and salaries, Bloomberg reported.

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