US personal incomes decline
INDO ASIAN NEWS SERVICE
Washington, Oct 1: Personal income fell last month for the first time since October 2009, while consumer spending increased 0.2 percent, the US Commerce Department said Friday.
Income from wages and salary dropped by $12.2 billion, or 0.1 percent, in August, surprising most anaylsts, who forecast a 0.1 gain.
The combination of lower earnings and more spending pushed the personal savings rate down to 4.5 percent, the lowest level since the end of 2009.
Higher prices for food and energy accounted for the bulk of the increase in consumer spending.
The Commerce Department's overall gauge of consumer prices was up 2.9 percent in August. Excluding more volatile food and fuel prices, the index rose 1.6 percent.
The US economy expanded at an annual rate of 1.3 percent in the second quarter, compared with an earlier estimate of 1 percent, the department said Thursday.
The department's third and final calculation of GDP growth in April-June was slightly above the 1.2 percent forecast by analysts and coincided with government economists' initial second-quarter numbers.
US growth domestic product grew by only 0.4 percent in the first three months of 2011.
The Commerce Department report also indicated that consumer spending rose by 0.7 percent in the second quarter, better than the previous estimate of a 0.4 percent increase.
Consumer spending accounts fuels around 70 percent of US economic activity.
The US unemployment rate remains at 9.1 percent more than two years after the end of the worst slump since the Great Depression. Last month, for the first since February 1945, the US economy created no net new jobs.
Lastupdate on : Sat, 1 Oct 2011 21:30:00 Makkah time
Lastupdate on : Sat, 1 Oct 2011 18:30:00 GMT
Lastupdate on : Sun, 2 Oct 2011 00:00:00 IST
- MORE FROM WORLD
GK MONITORING DESK
Srinagar, Oct 1: The Union Health and Family Welfare Minister, Ghulam Nabi Azad, on Saturday announced setting up of Regional Geriatric Centre at Sher-e- Kashmir Institute of Medical Sciences (SKIMS) Soura More
- Srinagar City
SCHOOLING BEYOND BLACKBOARD
ARIF SHAFI WANI
WHEN Satria Farah Amina Candoa, an educationist from Philippines visited Kashmir in 2004, she was “shocked to see children huddled in classrooms of pre-schools and given lectures like high school students More
Batote, Oct 1: Commuters on Srinagar-Jammu highway had a harrowing time on Saturday after thousands of vehicles got caught in chronic traffic jam between Patnitop and Batote stretch. Though the main More
- South Asia
Islamabad, Oct 1: The bodyguard who gunned down Punjab governor Salman Taseer in January this year was found guilty and sentenced to death Saturday by a Pakistani court, a media report said. The sentence More
Washington, Oct 1: Describing the death of al-Qaeda's top spiritual leader Anwar al-Awlaki as a "major blow" to the group, US President Barack Obama has said that it marks another significant milestone More