Consumers spend more, save less in September

Marketwatch ^ | 10.28.11 | Jeffry Bartash

[Free Vulcan]

Personal income rose a seasonally adjusted 0.1% last month, while consumer spending jumped 0.6%, the Commerce Department reported.

Americans paid for goods and services — autos were a big seller last month — largely by drawing on their savings or taking on more debt. The personal savings rate fell from 4.1% to 3.6%, marking the lowest level since December 2007...

...Inflation, meanwhile, rose 0.2% in September based on the latest reading from the personal consumption expenditure price index. The PCE index has increased 2.9% over the past 12 months

[KevinDavis]

Well in my area (granted I’m from Illinois).. The avg price is from 3.36 - 3.55 per gallon..

[Arrowhead1952]

Our future son in law actually got gas for less than $3.00 (2.96 or something like that) in Houston last month. He took our daughter’s car and filled it too.

[PGalt]

Could be just blowing off steam. It's been two years since the meltdown. Two years of deleveraging. In my household, we're debt-free except for an above-water mortgage refinanced down to under 4%, with about 8 years to go until it's paid off.

We've mostly been buying stocks, but we can buy stuff here and there. The cellar is stocked with emergency supplies. Income is fine. Actually, the last two years for us haven't been bad at all.

HOORAY Huck household! I would suspect that most conservatives would be in (or trending to) that same position.

I’ve just gone about my regular business, with no regard for the rogues in DC.

I've definitely cut back on unnecessary spending, which has helped me to paydown debt. Yes, we are stocking some basic food supplies, some ammo and everyone in the family now has a firearm. I've defunded every known socialist/enterprise/collective that I'm aware of.

[PLMerite]

“...largely by drawing on their savings or taking on more debt.”

And the third option is ?

[Huck]

Yeah, I’m still working on the firearm situation.

[PGalt]

Interesting observation & GREAT tagline. Thanks.

[PGalt]

You can get by without spending for a couple of years, but eventually things wear out. Those who have been paying down debt or saving large sums of money may be thinking OK, the car is 13 years old and has 226,000 miles, something has to be done.

Mine is 14 yrs old with over 300,000 miles, and my right ball joint just went on Thursday while driving to work. Rather than get a newer used, I'm having the necessary repairs done. Less $. The money going out of my pocket (more so than ever before) is for "must have" (in order to live/eat/work) items. I'll resume normal spending habits if we ever get a conservative President and Congress. Best wishes to all conservatives.

DEFUND socialist collectives, foreign and domestic.

[PGalt]

No way in hell I would buy a new car now and take on that kind of debt with this Turd in charge!

EXACTLY! See my post above this one.