Cleaning & Restoration Breaking News

Consumer Spending, Income Rise in October

WASHINGTON (Reuters) - U.S. consumers dug deeper into their wallets in October as personal spending outpaced income growth for the first time since the summer, the government said on Wednesday in a report that could boost prospects for economic growth ahead.

The Commerce Department said personal consumption expenditures rose 0.4 percent in October, reversing a 0.4 percent decline in September. Personal income rose 0.1 percent last month.

October was the first month since July that consumer spending, which accounts for roughly two-thirds of U.S. economic activity, outpaced the rate of growth for personal income.

The spending gain was larger than Wall Street analysts had been expecting and may boost forecasts for fourth-quarter economic growth. Economists polled by Reuters before the report's release had expected both spending and income to grow by 0.2 percent in October.

The increase in October spending was the largest since July's 1.1 percent gain, a sign that consumers are easing their hold on the purse strings and may be less worried about the direction of the economy.

The fitfulness of the economic recovery since the start of the year, coupled with worries about a possible conflict with Iraq, have been a drag on consumer confidence.

But according to a release on Tuesday from the private Conference Board, a private business group, consumers' outlooks rebounded from a nine-year low in November.

In the Commerce report, consumer spending on durable goods -- items meant to last three or more years -- dipped 1.0 percent in October, their second straight decline and the first back-to-back decline since the last two months of 2001.

Expenditures for non-durables rose by 0.7 percent while spending for services gained by 0.5 percent.

In another sign consumer worries may be easing, the saving rate also fell in October. Saving as percentage of disposable income fell to 4.2 percent from 4.4 percent in September.

A measure of inflation in the report showed price pressures remained tame in October. The price index for spending -- a gauge favored by Federal Reserve policymakers for tracking inflation -- increased by 0.2 percent in October. It was up a smaller 0.1 percent excluding food and energy prices.

Did you enjoy this article? Click here to subscribe to i Cleaning Specialist Magazine.

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

The 2014 Experience Conference and Exhibition

A look in photos at the 2014 Experience Conference and Exhibition, which was held from April 24-26 at the Embassy Suites Convention Center and Spa in Frisco, Texas.

Podcasts

Yes, it's only February now - several weeks or months before the thaw depending on where you live - and hopefully this winter has been a profitable one for your business during the historical slow season. But now's also the time to start planning for the busy season - spring - so that you can hit the ground running. In this episode of The Hitman Advertising Show, John Braun shares tips and tricks on how to make this spring your most profitable yet.
More Podcasts

ICS Cleaning Specialist Magazine

CoverImage

2015 March

The March ICS issue features content on cleaning services, green chemistry, encapsulation, terrazzo floors, educating clients and new products.

Table Of Contents Subscribe

Janitorial Work

In addition to residential and commercial carpet cleaning, do you do any janitorial work on the side?
View Results Poll Archive

THE ICS STORE

FinalCover.gif
The Carpet Cleaner's Book of Unlimited Success! (ebook)

Don’t worry about the recession or about your competition.  Now you can be the owner of over 400 ways for carpet cleaning professionals to make more money and get more jobs!

More Products

ICS DIRECTORY AND BUYING GUIDE

Director_Buyer.jpgThe premier resource and reference guide for the cleaning and restoration industries.

Click here to view

STAY CONNECTED

facebook_40.png twitter_40px.png youtube_40px.png

TRUCKMOUNT EQUIPMENT AND ACCESSORIES GUIDE

Truckmount.jpgEquipment listings and specifications from the leading industry manufacturers.

Click here to view