MW: U.S. consumer spending retreats after clunkers
By Rex Nutting
WASHINGTON (MarketWatch) - U.S. consumer spending fell sharply in September after the government's cash-for-clunkers program ended, the Commerce Department estimated Friday. Real (inflation-adjusted) consumer spending dropped a seasonally adjusted 0.6% in September after a 1% gain in August. Real disposable incomes fell a seasonally adjusted 0.1%, the fourth decline in a row. In current-dollar terms (not inflation-adjusted), spending fell 0.5% in September. Current-dollar incomes were flat. Economists surveyed by MarketWatch expected nominal spending to fall 0.4% and incomes to fall 0.1%. With spending falling faster than incomes, the personal savings rate rose to 3.3% of disposable income from 2.8% in August.
