"US Consumer Spending Surges Despite Declining Disposable Income"

Real disposable personal income has dropped for the third consecutive month, while spending remains strong. Personal income increased by 0.3 percent in September, but real disposable income decreased by 0.1 percent. Personal consumption expenditures increased by 0.7 percent, with goods increasing by 0.5 percent and services by 0.3 percent. The PCE price index increased by 0.4 percent, while core PCE (excluding food and energy) increased by 0.3 percent. Despite the drop in real disposable income, real personal consumption expenditures continue to rise as consumers dip into savings.