US personal spending rises 0.7% in September, beating estimates

By Ovunc Kutlu

ISTANBUL (AA) - Americans' personal spending increased by 0.7% in September, surpassing market expectations, according to official figures released Friday.

Personal consumption expenditures climbed $138.7 billion from the previous month, according to data from the Commerce Department's Bureau of Economic Analysis.

While the market expectation was a 0.5% increase, the figure for August was unrevised at 0.4%.

Disposable personal income, which is personal income minus personal current taxes, rose $56.1 billion, or 0.3%, said the bureau.

Personal income came in slightly below market estimates of 0.4%, following a 0.4% increase in August.

"The increase in current-dollar personal income in September primarily reflected increases in compensation, personal income receipts on assets, nonfarm proprietors’ income, and rental income of persons," it said in a statement.

Personal outlays, which include consumption expenditures, personal interest payments and current transfer payments, increased $175.1 billion in September, according to the figures.

While personal saving was $687.7 billion last month, the personal saving rate -- personal saving as a percentage of disposable personal income -- was 3.4%, figures showed.