PCE Declined in September

We expected as based on the advance GDP report, real personal consumption expenditures (PCE) declined sharply in September.

The YoY change in real PCE is now negative. Its the first time negative index since 1991.

Consumers lifted savings as they dealt with falling equity prices and uncertainty about their jobs.

From WSJ Online ;

Personal income rose at a seasonally adjusted rate of 0.2% compared to the month before, the Commerce Department said Friday. Income increased a revised 0.4% in August; originally, income for that month was seen 0.5% higher.

September personal consumption fell 0.3% compared to the month before. Spending had been flat in August, as originally reported.

Personal saving as a percentage of disposable personal income was 1.3% in September, up from 0.8% in August.