Income Rises In Line While Spending Misses

U.S. personal income was flat in November while spending rose 0.2% versus an expected 0.3%. October’s 0.6% climb in income was revised down to 0.5% while the 0.3% October spending gain was nudged up to 0.4%.

Wage and salary income posted a 0.1% November decline from 0.5% previously. Disposable income was unchanged last month after rising 0.5% in October (revised from 0.6%). The savings rate fell to 5.5% from 5.7% (revised from 6.0%).

The personal consumption expenditures (PCE) chain price index, one of the Federal Open Market Committee’s key price indicators, along with the core rate, were unchanged on the month. The prior 0.2% headline gain was nudged up to 0.3%. The 0.1% October core gain was unrevised.

On an annual basis, the headline price index was steady at 1.4%, with the core slipping to 1.6% from a revised 1.8% pace previously (revised from 1.7% annually). This is the strongest annual increase in the core since October 2012.

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