Personal Income and Spending Rise in November

Personal income increased 0.6% for November, outpacing consumer spending's 0.4% rise, the U.S. Department of Commerce reported [link opens in PDF] today. Income came in at double market analysts' expectations, while spending estimates hit the expected 0.4% mark. 

Compared to October's 0.1% bump for income and 0.1% drop for spending, this news comes as a welcome respite to warning signs of a slowing economy.

Although almost all types of income saw improvements, private wage and salary disbursements showed the largest gains, jumping $41.1 billion in November, compared to October's $16.3 billion decrease. October's lackluster numbers were partially attributed to Hurricane Sandy, with economists crediting the storm with an $18.2 billion annual rate loss.

Adjusted for price changes, income rose 0.8% in November, while spending increased 0.6%. 

Seasonally adjusted personal income for November was calculated at an annual rate of $13.53 trillion, almost 17% more than the $11.60 trillion spending rate. Compared to a year ago, income is up 4.1%, while spending has increased 3.5%.

link


Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2166259, ~/Articles/ArticleHandler.aspx, 7/30/2014 5:15:07 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement