Household Savings Down in September

Washington, DC, Nov. 1, 2010 -- The U.S. household savings rate fell to its lowest level in more than a year in September as incomes unexpectedly declined, the Commerce Department said Monday.

Personal incomes fell 0.1% in September, one month after incomes were boosted a strong 0.4% 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% after an upwardly revised 0.5% gain in August.

Wall Street economists had been expecting a 0.2% increase in income and a 0.3% gain in spending for September.

Wages and salary income, the key for consumer spending, was flat in September after having risen 0.2% in August.