US consumers cut spending in September and lifted savings in response to the financial crisis. Personal income rose at a seasonally adjusted rate of 0.2 percent compared to the month before, the Commerce Department said Friday. Income increased a revised 0.4 percent in August; originally, income for that month was seen 0.5 percent higher.

September personal consumption fell 0.3 percent compared to the month before. Spending had been flat in August, as originally reported.

Personal saving as a percentage of disposable personal income was 1.3 percent in September, up from 0.8 percent in August. The saving rate has been higher recently than during the past few years. That indicates people are spending less amid the soft economy and squirreling away money to protect themselves as fears of a deep recession abound.

A price index for personal consumption expenditures rose 0.1 percent in September compared to the prior month. The index was flat in August. The PCE price index excluding food and energy, or core PCE, rose 0.2 percent a second month in a row in September.

Personal income rose 0.2 percent in September, after rising 0.4 percent in August. Wages and salaries, the largest component of personal income, rose 0.1 percent after rising 0.4 percent. The net effect of Hurricane Ike on personal income was small, as declines in rental income and proprietors' income were offset by a rise in insurance payments. The Economic Stimulus Act of 2008 had a negligible effect on personal income in both months.

Real disposable personal income (DPI), income adjusted for inflation and taxes, rose 0.1 percent in September after falling 1.0 percent in August. Real DPI was affected by tax rebates and subsidies from the Stimulus Act. Excluding these items, real DPI increased 0.2 percent in September and 0.4 percent in August.

Real consumer spending (personal consumption expenditures) fell 0.4 percent in September after remaining flat in August. Spending on autos, gas and oil turned down.

PCE prices rose 0.1 percent in September after remaining flat in August. Excluding food and energy, the index rose 0.2 percent in September and August.

Personal saving as a percent of disposable income was 1.3 percent in September.