Financial Times FT.com

US personal spending drops in September

By James Politi in Washington

Published: October 31 2008 13:12 | Last updated: October 31 2008 13:12

Personal income rose by 0.2 per cent in September while personal spending fell by 0.3 per cent, government data showed on Friday, highlighting efforts by US households to save amid the downturn.

The figures help explain the surprise 3.1 per cent drop in consumption in the third quarter on an annualised basis, which was revealed on Thursday by the commerce department and marked the first drop in US consumer spending since 1991.

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