A report released by the Commerce Department on Friday showed personal income in the U.S. decreased by much more than expected in the month of September.
The Commerce Department said personal income slumped by 1.0 percent in September after inching up by 0.2 percent in August. Economists had expected personal income to edge down by 0.2 percent.
The bigger than expected drop in personal income primarily reflected a decrease in government social benefits, both in unemployment benefits and “other” benefits.
Meanwhile, the report showed personal spending climbed by 0.6 percent in September after jumping by an upwardly revised 1.0 percent in August.
Economists had expected personal spending to rise by 0.5 percent compared to the 0.8 percent increase originally reported for the previous month.