By Greg Robb, MarketWatch WASHINGTON (MarketWatch) -- Reluctance on the part of consumers to shop for big-ticket items like cars 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 3.1%, the fastest rate in 28 years. See full story. The Federal Reserve has already reacted to the weakness, slashing its target interest rate down to 1% earlier this week. See full story. Inflation-adjusted spending on durable goods fell 0.2% in September. This was the second straight monthly decline. Real spending on nondurable goods was up 0.2% in September, while spending on services rose 0.1%. See full report. Also last month, personal incomes increased 0.2% after rising 0.4% in August. Disposable incomes adjusted for inflation rose 0.1% after a sharp 1.0% decline in the previous month. 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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