Personal Spending Declines

123jump.com Staff
31 Oct, 2008
New York City

The U.S. personal spending in September declined at 0.3% from the revised increase of 0.1% in August. Salaries and wages increased at the slower pace in the month than in August. The employment cost in the third quarter rose at 0.7% matching the gains in the first two quarters of this year.

[R]10:40AM New York – U.S. stocks traded sideways in the morning trading. In Asia India surged 8% on the first day after Diwali holidays and Japan fell 5%.[/R]

U.S. consumers battling economic worries lowered spending in September according to the latest data from the Commerce Department. Consumer spending as measured by personal consumption expenditure declined 0.3% or $33.6 billion from the revised 0.1% rise in August or $4.5 billion. Real PCE decreased 0.4% compared to an increase of 0.1% in August.

Personal income increased 0.2% or $24.5 billion and disposable income increased 0.2% or $25.7 billion. In August, personal income increased $44.8 billion, or 0.4%, DPI decreased $107.7 billion, or 1.0%, and PCE increased $4.5 billion, or less than 0.1%, based on revised estimates.

The key to personal spending is the wage and salary disbursements. Private wages and salary increased $0.3 billion in September compared to $24.1 billion in August. The supplements to wages and salaries increased $1.2 billion in the month compared to an increase of $3.1 billion.

The Labor Department reported that in the third quarter employment cost rose 0.7% matching the rate of increase in the first two quarters of this year.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 452.78 or 5.01% to 8,576.98, Hang Seng index in Hong Kong decreased 361.18 or 2.52% closed to 13,968.67. CSI 300 index in China lower 34.00 or 2.00% closed to 1,663.66. ASX 200 index in Australia increased 16.90 or 0.42% to close 4,018.00. The KL Composite index in Malaysia higher 10.05 or 1.18% closed to 863.61.

Japan lowered its key lending to 0.3% as expected.

The Kospi Index in South Korea increased 28.34 or 2.61% to close at 1,113.06. SET index in Thailand closed higher 8.22 or 2.01% to 416.53 and JSE Index in Indonesia increased 82.84 or 7.06% to 1,256.70. The Sensex index in India increased 743.55 or 8.22% closed to 9,788.06.

Europe Markets Review

In London FTSE 100 Index traded lower 62.81 or 1.46% to 4,228.84, in Paris CAC 40 Index decreased 61.34 or 1.80% to 3,346.48 and in Frankfurt DAX index traded lower 12.90 or 0.26% to 4,856.40. In Zurich trading SMI increased 40.14 or 0.69% to 5,882.48.