Spending stumbles in October as income growth stalls

1:30 PM growth, income, October, spending, stalls, stumbles No Comments

Reuters

US consumer spending fell in October for the first time in five months as income growth stalled, what slowdown of economic growth in the fourth quarter.

The U.S. Commerce Department said Friday consumer spending fell 0.2 percent after an unrevised 0.8 percent increase in September.

It said it could not quantify the implications of Superstorm sandy, but added that where the source data was not made, adjustments still available or the effects of the storm not reflected.

Although the storm that slammed late October for the East Coast, was automobile sales brake, the decrease in expenditure last month partially a reflection of the weak economic fundamentals.

By Reuters surveyed economists had expected, would be the consumer spending, which accounts for 70 percent of the U.S. economy, flat last month.

Adjusted for inflation, fell 0.3 percent, the first decline since June, after rising 0.4 percent of the previous month consumer spending.

It was also the largest decline since September 2009 and implied increase in consumer spending this quarter would fight 1.4 percent in the third quarter annual rate, exceeding was the slowest in more than a year.

While the economy in the third quarter after 1.3 percent in the previous three months to advance came from much of the boost the recovery of the Dunmore and robust Government spending, grew 2.7 percent. That is lost in the last three months of the year.

Growth also on the terms of the storm could be pressure and automatic deep spending cuts on Government and increased taxes, the $600 billion could release early next year, when the Congress and the Obama administration on a cut less-severe budget deficits some.

Income was in October for the first time since April unchanged and followed a gain of 0.4 percent in September. The Department said, private wages and salaries fell through caused work stoppages reflecting Sandy.

The amount of the income of private households after inflation and taxes dipped 0.1 percent after his apartment in September available. Despite weak income growth, the saving rate rose to 3.4 percent from 3.3 percent of the previous month.