• Both personal income and consumer spending rose according to data out today.  After declining mildly in August, personal income and disposable personal income (income after taxes) were each up 0.1 percent in September.
• Growth in personal income came mostly from wages and salary and compensation supplements, and this was among private industry; government wages and salaries actually declined in September. Personal income on assets (interest and dividend income) also declined as rates remain extraordinarily low.  Consumer spending was up 0.6 percent and was an important component in propelling GDP growth of 2.5 percent in the 3rd quarter as reported yesterday.
• Because the jump in consumer spending exceeded income growth, the personal savings rate dipped in September to 3.6 percent.—the lowest personal savings rate since December 2007, when the recession began.
• Separately, an index of consumer sentiment showed much better data for October bringing the index to its highest level since July.  The index remains below pre-recession levels, but the improvement is a good sign for continued consumer spending and further economic growth in the 4th quarter.
• Today’s data and other economic trends this week suggest clearly that there is very little chance of another recession in 2012.  The huge recent gains in the stock market are a reflection of this brighter outlook.

Weekly Forecast

At a glance, this table shows the forecast for some of the most pertinent weekly data for REALTORS® to keep in mind. This changes from week to week as new data becomes available. For the full forecast from the latest Pending Home Sales release, click here (PDF).