Personal income rose 0.3%, or by $54 billion, in November, from the previous month, according to the U.S. Department of Commerce’s Bureau of Economic Analysis. Disposable personal income increased 0.4% or by $50.9 billion, and personal consumption expenditures rose 0.6% or by $87.1 billion.
In November, real disposable income increased 0.1%, and real personal consumption expenditures rose 0.1%. Real values are inflation-adjusted estimates, which exclude the effects of price changes. The personal consumption expenditures price index increased 0.2%. Excluding food and energy, the price index was up 0.1%.
The personal consumption expenditures price index rose 1.8%, from November 2016. The index, excluding food and energy, was up 1.5%, from November 2016.
“The increase in personal income in November primarily reflected increased in wages and salaries and personal interest income,” according to the BEA. The $49.1 billion increase in real personal consumption expenditures reflected a $22.3 billion rise in spending for goods and a $27.6 billion increase in spending for services. The rise in goods spending can be attributed to an increase in spending for recreational goods and vehicles. The jump in services spending is largely a result of increased spending for electricity and gas.
Personal outlays increased $91.7 billion in November. Personal saving was $426.2 billion, and the personal salving rate, which is personal saving as a percentage of disposal personal income, was 2.9%.