Friday, December 23, 2011

Personal Income Growth and Consumption Slowed in November

Personal income growth and consumer spending growth were both slow in November according to a Bureau of Economic Analysis report released this morning. Nominal personal income grew at 0.1% in November, down from 0.4% in October. Disposable income failed to grow, in either real or nominal terms, in October. Wage income fell for the first time since August with growth driven by rental, dividend and interest income.

Consumer spending growth has moderated in the past two months growing just 0.1% per month. This is significantly lower than the levels of 0.7% and 0.8% seen earlier in the year. Nominal spending growth was led by durable goods, with spending on nondurable goods falling for the second month.

The savings rate dropped to 3.5%, from 3.6% in October. Consumers dropped their savings rates significantly from June through September, but the savings rate seems to have leveled out. Without income growth, however, it will be difficult for consumers to bring savings back up.

Read the report.

1 comment:

Carolyn Widmer said...

I am so much excited after reading your blog. Your blog is very much innovative and much helpful for any industry as well as for person

Post a Comment

Please read our comment policy before making a comment.