US Personal Spending Rises 0.2%, Lowest In 8 Months
Personal sending in the United States rose 0.2 percent in November from October of 2016, following an upwardly revised 0.4 percent gain in the previous period. It is the lowest rise since a flat reading in March and below market expectations of a 0.3 percent increase. Personal income was flat, the worst performance since a 0.1 percent drop in February.
Consumption on nondurables slowed sharply (0.1 percent compared to 1.1 percent in October) and for durables it fell 0.6 percent (+1.1 percent in October). In contrast, spending on services rose at a faster 0.3 percent (0.1 percent in October).
12/22/2016 3:23:53 PM
Personal income was flat, compared to market expectations of a 0.3 percent gain. It primarily reflected increases in personal interest income and rental income of persons that were mostly offset by a decrease in wages and salaries.
Personal outlays increased $26.8 billion in November. Personal saving was $780.9 billion and the personal saving rate, personal saving as a percentage of disposable personal income, was 5.5 percent.
The PCE price index was unchanged from October, following a 0.3 percent rise in the previous month. Excluding food and energy, the PCE price index was also flat, below 0.1 percent in October.