By Greg Robb, MarketWatch WASHINGTON (MarketWatch) - Reluctance on the part of consumers to shop for big-ticket items like autos led U.S. consumer spending to its biggest drop in over four years, the Commerce Department reported Friday. This is bad news for those worried about a recession. The health of the consumer is a key issue for the economy. September's weak performance is a clear sign that a recession is underway. The weakness of consumers was not a surprise. The government estimated Thursday that the U.S. economy contracted at a 0.3% annualized rate in the third quarter, as consumer spending declined at the fastest rate in 28 years. The Federal Reserve has already reacted to the weakness, slashing its target interest rate down to 1% earlier this week. Inflation-adjusted spending on durable goods fell 7.4% in September. This was the seventh straight monthly decline. Real spending on nondurable goods was down 1.4% in September, while spending on services rose 1.4%. Also last month, personal incomes increased 0.2%, the slowest growth since April. August's personal incomes were held back by weak growth in employment and therefore in wages. Wages and salaries increased 0.2%. After-tax incomes adjusted for inflation rose 0.4%. Adjusted for inflation, consumer spending fell 0.4% in September. With income rising faster than spending, the personal savings rate rose to 1.3% in September, up from 0.8% in August.

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