shadow

Slippage in factory pay cuts US personal incomes

Shrinking factory payrolls pulled down September's personal income figure to a weak 0.3 percent increase, the Commerce Department said.

Sharply increased unemployment benefits and interest on money funds and savings certificates made up for the fall in factory wages.

In a surprise for analysts, the savings rate appeared to drop further, to 6.4 percent of disposable income, after peaking in July at 7.5 percent. Disposable income, after personal taxes and government fees, also climbed 0.3 percent in September, the department said, and like the overall figure was the strongest growth since July's tax-cut surge.

of 5 stories this month > Get unlimited stories
You've read 5 of 5 free stories

Only $1 for your first month.

Get unlimited Monitor journalism.