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Nominal personal income increased at a nonannualized rate of 0.5 percent in September. This follows increases of 0.2 and 0.5 percent in July and August, respectively. Over the past year, nominal personal income has increased 3.7 percent. Current personal taxes were relatively stable during the month, increasing 0.2 percent, as disposable personal income (DPI)—nominal personal income less current personal taxes—also increased 0.5 percent. After controlling for price changes, real disposable personal income increased 0.4 percent in September, which follows increases of 0.4 percent in August and 0.2 percent in July. Over the past year, real DPI has increased 2.0 percent.
Contributing to consumption growth in September was a 0.2 percent increase in services consumption and a 0.6 percent increase in nondurable goods consumption. This was partially offset by a 1.2 percent decline in durable goods consumption, the first decline since January. Over the past twelve months, goods consumption has been steady, increasing 3.3 percent, while services consumption has increased just 1.0 percent. The larger increase in income compared with the increase in consumption caused another slight increase in the personal savings rate, which is now at 4.9 percent and has been increasing throughout most of the year.