Personal Income Rose Strong 0.9% In September --- Consumer Spending Climbed 1.4%, Indicating Economy Is Likely to Keep Growing
WASHINGTON -- Large gains in personal income and consumer spending in September indicate that the economy probably will continue to grow at a moderate rate in coming months.</br></br>Personal income rose by a sturdy 0.9% during the month and consumer spending increased an even more robust 1.4%, the Commerce Department reported.That compares with income growth of 0.6% and flat consumption in August.</br></br>"These numbers should lay to rest for the time being any fears of recession," said Allen Sinai, chief economist for Shearson Lehman/American Express Inc.</br></br>The report, which follows two months of largely sluggish economic statistics, was good news for President Reagan, who has just 2 1/2 weeks left in his reelection campaign.</br></br>But the department's report wasn't all roses. A consumption-based inflation measure, which is reported with a one-month lag, showed that prices paid by consumers were rising at a 0.6% rate in both July and August. That suggests an annual inflation rate exceeding 7%.