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To: Lucretius who wrote (32196)	10/30/2000 8:45:27 AM
From: UnBelievable	Read Replies (2) \| Respond to of 436258

US Personal Income +1.1% In Sept.; Consensus +0.6% 10/30/2000 Dow Jones News Services (Copyright © 2000 Dow Jones & Company, Inc.) (MORE) DOW JONES NEWS 10-30-00 08:30 AM DJ US Personal Spending +0.8% In Sept.; Consensus +0.7% (MORE) DOW JONES NEWS 10-30-00 08:30 AM DJ August Personal Income Unrevised At 0.4% (MORE) DOW JONES NEWS 10-30-00 08:30 AM *DJ August Spending Revised To +0.5% From +0.6% (MORE) DOW JONES NEWS 10-30-00 08:30 AM =DJ Data Snap: Farm Payments Propel September Income Growth =========================================================== Personal Income/Spending: Sep. Aug. !Surprise: Yes ! Income: 1.1% 0.4% !Trend: Faster ! Spending: 0.8% 0.5%r ! Growth ! PCE Deflator: 0.4% UNCH !Consens.: ! !Income: +0.6% ! !Spending:+0.7%! =========================================================== By Jonathan Nicholson Of DOW JONES NEWSWIRES WASHINGTON (Dow Jones)--Personal income in September grew at its fastest pace since the fall of 1999, boosted by federal farm subsidies and outpacing consumer spending for the first time since April. The Commerce Department said Monday income grew a robust 1.1% in September, well above the unrevised 0.4% pace seen in August. Consumption expenditures grew a healthy 0.8%, up from the revised 0.5% August increase. Previously, the government had estimated August spending rose 0.6%. Both figures were stronger than Wall Street had been anticipating. In a survey of analysts by Dow Jones and CNBC, the median forecast called for gains of 0.6% and 0.7% in income and spending, respectively. However, the numbers are expected to have minimal effect on investors or at the Federal Reserve. The September income and spending data were already incorporated within Friday's release of the advance estimate of third quarter Gross Domestic Product. In Friday's report, the economy expanded at a 2.7% annual rate, while inflation pressures remained tame. The slower growth rate was cheered by financial markets as a sign that the Fed's attempts to cool the economy without bringing growth to a halt - a so-called "soft landing - were being met with success. The September data confirmed the GDP report's picture of resilient spending coupled with largely-dormant inflation. Spending was concentrated in the durable goods sector, comprising goods meant to last three or more years. Durable goods spending increased by 1.5% in September. The other two spending categories, non-durables and services, saw increases of 0.9% and 0.7%, respectively. The deflator for personal spending, an inflation gauge watched closely by Fed policymakers, accelerated from its August reading, rising 0.4%. In August, the deflator was unchanged. September's income gain was the largest since October 1999, when income, also boosted by farm subsidies, gained 1.3%. Commerce said income would have increased a smaller 0.4% without the push contributed by farm income. Overall wages and salaries grew by 0.6% in September, an acceleration from the 0.2% advance seen in August. The increase in income relative to spending helped boost the anemic U.S. personal saving rate. The rate was negative 0.1% in September after being a record low negative 0.4% in August. Negative saving means consumers borrowed or liquidated assets to maintain spending levels. However, many economists believe the saving rate - the percentage of income left over after spending - paints an overly pessimistic view of the consumer financial picture, as it doesn't account for gains in retirement plan assets or wealth tied up in home ownership. - Jonathan Nicholson, Dow Jones Newswires; 202-862-9255; Jonathan.Nicholson@dowjones.com (MORE) DOW JONES NEWS 10-30-00 08:30 AM =DJ Table Of Personal Income Data From Commerce Sept. Aug. July (annual rate in trillions of dollars, % changes are increases unless preceded by minus sign.) Personal Income 8.425 8.335 8.302 % Change 1.1 0.4 0.3 Wage and Salary 4.827 4.800 4.789 Manufacturing 0.817 0.820 0.824 Farm 0.064 0.016 0.018 Rental Income 0.145 0.135 0.136 Dividends 0.402 0.400 0.397 Personal Interest Income 1.049 1.046 1.042 Transfer Payments 1.079 1.075 1.069 Old-Age Survivors 0.631 0.627 0.624 Disability and Health Insurance Benefits Personal Consumption 6.866 6.810 6.777 Expenditures % Change 0.8 0.5 0.6 Durable Goods 0.834 0.822 0.817 Non-Durable Goods 2.045 2.028 2.024 Services 3.986 3.961 3.935 Savings Rate -0.1 -0.4 -0.1 (END) DOW JONES NEWS 10-30-00 08:30 AM