We’re saving less as incomes tumble

The savings rate for U.S. households fell to its lowest level in 13 months in September as incomes showed an unexpected decline, the Commerce Department estimated Monday.

Personal incomes slipped 0.1 percent in September, one month after incomes were boosted a strong 0.4 percent by unemployment compensation. This marked the largest decline for incomes since July 2009.

At the same time, consumer spending increased a seasonally adjusted 0.2 percent after an upwardly revised 0.5 percent gain in August.

Economists had been looking for increases of 0.2 percent for income and 0.3 percent for spending.

With spending rising faster than incomes, the personal savings rate fell to 5.3 percent of disposable income, down from 5.6 percent in August. It was the lowest savings rate since August 2009.

McClatchy News Service