Consumer Spending Drops In September While Incomes Slow

WASHINGTON (AP) - Consumer spending dropped in September by the largest amount in four years while incomes suffered because of Hurricane Ike.

The Commerce Department says personal spending fell by 0.3 percent last month, the biggest decline since June of 2004. That followed flat readings in both July and August, contributing to the worst quarterly performance in 28 years.

Incomes showed a 0.2 percent rise in September, just half of the August increase, a slowdown that partly reflected the adverse effects of Hurricane Ike along the Gulf Coast. The storm cut into rental payments and earnings from businesses affected by the storm.

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