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Personal income grew by $48.1 billion in September, 0.4%, its fastest pace since March. Despite the strong income growth consumption personal consumption growth outpaced income, leading the savings rate to fall to its lowest level in ten months.



Personal income growth accelerated in September, led by dividend, rental and proprietor income. Wage income improved in September, rising 0.3%, however remains modest consistent with the weak labor market.

Real spending accelerated to 0.4% in september, however nominal spending jumped 0.8% over the month, the fastest growth since February. Spending growth was led by goods, both durable and non-durable.

Nominal spending outpacing income led the savings rate to drop to 3.3%, its lowest level on ten months. The savings rate has now fallen 1% since June.

Read the BEA release.

Existing home prices appreciated 0.3% in September according to the Case-Shiller’s 10- and 20-city indices. Gains from one year ago accelerated as well, with the 20-city index rising 3.0% above its September 2011 pace, better than the 2.0% year-ago gain reported in August. September’s year-ago gain is the strongest since July 2010.



September’s improvement was widespread geographically with 15 out of the 20 metropolitan areas surveyed reporting month over month price declines. Year-over-year gains improved in most areas surveyed as well, with only 2 reporting declines in prices from a year ago. Phoenix has seen the strongest gains in the past year, with prices 20% above September 2011 levels. Chicago and New York are the only areas that are still reporting year over year declines, however both saw improvement from August.



Despite the recent improvements, home prices remain well below their pre-crisis peak. The 20-city index is still 29.2% below its July 2006 peak.

Read the S&P release.

Consumers increased their spending in September, with retail sales growing 1.1% over the month. The growth in September follows an upwardly revised August growth of 1.2%, making for the third consecutive monthly gain. September’s strength was led by electronics and appliance stores and non-store retailers largely due to iPhone 5 sales and sales at gasoline stations and auto dealers.


Core retail sales (excluding autos and gas) rose by 0.9%, up from the 0.3% the previous month. Growth from a year ago accelerated to 5.4% in September, up from the 5.0% reported in August.

Electronic and appliances saw the strongest gains in September, rising 4.5% over the month, followed by gasoline stations rising 2.5% over the month.

Auto dealers, grocery stores, and building supply stores all posted average to slightly above average growth. Departments stores were the only major category displaying weakness, with sales fall 0.2% in September.

Read the Census report.

Housing starts jumped 15% in September to their fastest pace since 2008, surpassing the surge in home building that accompanied the 2010 home-buyer tax credit. Housing starts rose to an annualized pace of 872,000 units in September, up from the 758,000 pace seen in August.



The pace of single family starts rose 11% in September, to an annualized pace of 603,000 units. Multifamily construction also saw strong gains in September, gaining 25% and reaching a pace of 269,000 units per year.



Housing starts were also improved in September, rising 11.6% over the month. The gain in starts was seen primarily in multi-family units which rose 20.3% over the month. Single-family starts rose 6.7% in September as well.

Read the Census report.