Consumer spending slows — for a good reason

[mahatmakanejeeves]

Source: MarketWatch

By Jeffry Bartash
Published: Oct 30, 2015 8:40 a.m. ET

Cheaper gas leads to first drop in PCE inflation since January

WASHINGTON (MarketWatch) — Americans are snapping up new cars and trucks at the fastest rate in a decade, but cheaper gas prices led to the smallest increase in consumer spending in September in eight months.

Consumer spending rose a seasonally adjusted 0.1% last month to mark the smallest gain since January, the Commerce Department said Friday.

The slowdown in spending wasn’t because Americans suddenly got worried about the health of the economy. Purchases of long-lasting goods such as new autos jumped 0.6% while spending on services like dining out increased 0.3%.

Yet spending on nondurable goods — mainly gasoline and oil-related energy products — dropped a sharp 0.3%. That largely explains softer spending in September.

Read more: http://www.marketwatch.com/story/consumer-spending-slows-for-a-good-reason-2015-10-30

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EMBARGOED UNTIL RELEASE AT 8:30 A.M. EDT, Friday, October 30, 2015
BEA 15—51

[font color="red"]* See the navigation bar at the right side of the news release text for links to data tables, contact personnel and their telephone numbers, and supplementary materials.[/font]

Technical: James Rankin [phone] (Personal Income) [e-mail]
Harvey Davis [phone] (Personal Consumption Expenditures) [e-mail]
Media: Jeannine Aversa [phone]

PERSONAL INCOME AND OUTLAYS, SEPTEMBER 2015

Personal income increased $18.6 billion, or 0.1 percent, and disposable personal income (DPI) increased $19.2 billion, or 0.1 percent, in September, according to the Bureau of Economic Analysis. Personal consumption expenditures (PCE) increased $15.6 billion, or 0.1 percent. In August, personal income increased $54.9 billion, or 0.4 percent, DPI increased $49.5 billion, or 0.4 percent, and PCE increased $44.2 billion, or 0.4 percent, based on revised estimates.

Real DPI increased 0.2 percent in September, compared with an increase of 0.4 percent in August. Real PCE increased 0.2 percent, compared with an increase of 0.4 percent.
....

This news release is available on BEA’s Web site at www.bea.gov/newsreleases/rels.htm.

[catrose]

1. What I don't understand

is why a few weeks or even months of lower gas prices makes people take out a many-years loan on a gas-guzzling behemoth truck, just as though that blip of low prices would continue forever.

[Elmer S. E. Dump]

2. Morons?

I'm not bashing those that buy gas-guzzling behemoth trucks, because some may actually be needed to perform some job, etc. But if temporary cheap gas makes you do that, then you are what we on DU sometimes call a MORAN!!!

[catrose]

3. But so many of them? Sigh.

[leftyladyfrommo]

4. It's because people love trucks.

Especially guys. Any excuse to buy one will work. They just make you feel like a real man's man.

[catrose]

5. I guess so

I'm glad I married the exception who likes compacts. He'd like something sportier, but he hates big car loans.

[leftyladyfrommo]

6. I am in KC

and the guys here all want trucks. And the bigger the better. Some of them get 6 mph.
I drive a Toyota Yaris and those trucks are 3x as long as my car.

I don't get it either .

.