US Savings Rate Goes Up, But Personal Income Has Fallen Dramatically

In September, Personal Income fell very slightly, by less that 0.1% from August, as did Disposable Personal Income (or DPI, a.k.a. “after tax income”).

However, with the “Cash for Clunkers” program over, Personal Consumption Expenditures (PCE, or consumer spending) fell by $47.2 billion from August or 0.5%, after increasing 1.4% from July to August. If one strips out inflation, real DPI fell 0.1% following a 0.2% decline in August, while real PCE was down 0.6% following a 1.0% rise in … [visit site to read more]


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