Last updated October 30, 2009: 12:45 PM ET --- The major U.S. equity indices are trading lower Friday due to evidence that consumers are still holding off on spending, which off-set yesterday's enthusiasm over the economy's growth in the third quarter. The Labor Department said personal spending fell 0.5% in September, inline with economists estimates. It was the largest drop in nine months and followed a 1.3% rise in August, which was fueled by the government's Cash for Clunkers program. The Reuters/University of Michigan consumer sentiment index fell to 70.6 in October, from 73.5 in September, roughly inline with economists estimates. The Labor Department also reported on Friday that personal income was flat in September, compared to the previous month, and inline with economists estimates. The lack of growth is due to ongoing high unemployment rates and is a cause for concern for the markets. The Dow Jones Industrial Average is trading 1.94% lower at 9,768.88, the S&P500 is down 2.2% at 1,043.50, and the Nasdaq Composite is down 1.88% at 2,058.37.

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